Morgan Stanley Upgrades Winbond and Nanya to Overweight on Strong Memory Chip Market Outlook

Morgan Stanley has upgraded two major Greater China semiconductor stocks, Winbond Electronics Corp. and Nanya Technology Corp., from Equal-weight to Overweight, citing strengthening memory chip prices and expanding growth opportunities in the memory semiconductor market.

The investment bank expressed a more optimistic outlook for the industry, driven largely by rising DDR4 memory chip pricing and increasing demand across key technology segments. The positive assessment also reflects growing opportunities in specialized memory products and capacity expansion initiatives that could support long-term earnings growth.

Winbond Electronics Corp. (TWSE: 2344) received the most significant upgrade, with Morgan Stanley more than doubling its price target to NT$222 from NT$100. The firm also raised its earnings forecasts substantially, increasing its 2026 earnings per share (EPS) estimate by 23%, while boosting 2027 and 2028 EPS projections by 65% and 94%, respectively.

According to Morgan Stanley, the revised outlook incorporates stronger DDR4 pricing trends and emerging opportunities from Winbond’s SiCap and SLC NAND product lines. The sharp increase in long-term earnings expectations highlights the bank’s confidence that these businesses will become increasingly important contributors to future profitability.

Nanya Technology Corp. (TWSE: 2408) was also upgraded to Overweight from Equal-weight. Morgan Stanley increased its price target for the company to NT$380 from NT$278. The bank raised its 2026 EPS forecast by 15%, while 2027 and 2028 estimates were increased by 29% and 33%, respectively.

The upgrade reflects improving conditions in the DRAM market, particularly the strength of DDR4 memory pricing, as well as Morgan Stanley’s more favorable view of Nanya’s long-term supply agreements with server and enterprise solid-state drive (SSD) customers. Additionally, Nanya plans to expand its DDR5 production capacity by adding 5,000 wafers per month beginning in the third quarter of 2026. This capacity expansion is expected to support future revenue growth and strengthen the company’s competitive position in the next-generation memory market.

Morgan Stanley’s upgrades underscore growing confidence in the semiconductor sector as memory chip fundamentals continue to improve and demand for advanced memory solutions remains strong.