Richard Yu, CEO of Huawei's consumer business, said Huawei's own operating system for smartphones and laptops could be ready for use in China by fall this year.Technologyread more
Among the many ways Trump has shattered White House norms, his impulsive public communications rank among the most consequential. By inspiring investors or spooking them, his...Politicsread more
A federal judge in New York City on Wednesday said Deutsche Bank and Capital One can turn over financial documents related to President Donald Trump and his businesses in...Politicsread more
CNEX, backed by Microsoft and Dell, filed new allegations in a Texas suit accusing China's Huawei and an executive of trade secrets theft.Technologyread more
With Amazon and Walmart facing regulatory hurdles in India, Reliance's Mukesh Ambani isTechnologyread more
Japan's Panasonic said on Thursday it has stopped shipments of certain components to Huawei Technologies to comply with U.S. restrictions on the Chinese company.Technologyread more
Treasury Secretary Steven Mnuchin told CNBC on Wednesday that a trip to Beijing to resume trade negotiations has not been scheduled yet, reducing hopes of a speedy resolution...Asia Marketsread more
Research analyst Adam Jonas, a long-time Tesla bull, said it's extremely unlikely that big tech firms like Apple or Amazon would buy it.Technologyread more
The disclosures come as a federal judge ruled Wednesday that two other banks — Deutsche Bank and Capital One — can give financial documents to Congress, NBC News reports.Politicsread more
Shares of L Brands, the owner of Victoria's Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and...Retailread more
Officials remained firmly committed to a "patient" policy stance at their meeting earlier this month.The Fedread more
Semiconductors have crushed the market so far this year, but one Wall Street firm believes the sector has topped out.
Morgan Stanley lowered its ratings on several chip stocks, citing lower flash memory prices and meager earnings growth next year.
"We think now is the time to reduce exposure to NAND [flash memory] and Asian semiconductor names as the industry has benefitted from sizeable demand tailwinds and unprecedented pricing power, which we see reversing soon," analyst Shawn Kim wrote in a note to clients Sunday entitled "Time For a Pause." "Given our view of the cycle, we cannot recommend the sector until the market recognizes mounting pressure on NAND prices and slowing logic chip growth momentum in the near term. … This reflects our negative view of prospects for the global memory industry, which is currently at a peak."
As a result, the firm lowered its ratings for Western Digital, Samsung Electronics and Taiwan Semiconductor shares to equal weight from overweight.
Western Digital, Taiwan Semiconductor ADR and iShares PHLX Semiconductor ETF closed down 6.7 percent, 4.5 percent and 1.3 percent respectively.
Kim said the firm's analysis of previous memory cycles revealed investors should sell chip stocks three to six months before memory prices peak. He noted that flash memory prices are already falling and his quantitative model predicts DRAM memory prices will top out in mid-2018.
"We would reduce weightings in the memory sector across regions and verticals as getting the industry call right is a lot more important than picking stocks in the memory and logic sector, as these stocks move in a pack," he wrote. "We believe a further positive re-rating of memory shares over the next 12 months will be difficult to achieve considering our view that the industry will not grow earnings materially in 2018."
The iShares PHLX Semiconductor ETF is up 48 percent year to date through Friday compared with the S&P 500's 16 percent return.
If chip stocks do fall, the analyst said, he would recommend shares of Micron as he's more bullish on DRAM's supply-demand fundamentals compared with the flash memory business. The firm maintained its overweight rating for Micron shares.
Western Digital, Samsung Electronics and TSMC did not immediately respond to requests for comment.
— CNBC's Michael Bloom contributed to this story.