Morgan Stanley: Chip stocks’ correction is nearing its end; S&P 500 year-end target at 8,000

Morgan Stanley’s Chief U.S. Equity Strategist Mike Wilson reaffirmed his year-end S&P 500 target of 8,000—unchanged—despite waning AI-driven trading enthusiasm and recent sustained pressure on U.S. equities. The firm’s tactical downside range remains set at 7,100–7,200, slightly below the current 200-day moving average, while its base-case year-end target stays anchored at 8,000. Wilson noted that a series of upcoming “reckoning events”—including the midterm elections—could serve as inflection points marking the end of the current market correction. He maintains a relatively cautious stance on semiconductors, suggesting their support level could fall significantly below current levels, though he expects selling pressure to ease next month. The strategy team added that as investor skepticism grows over the timing and scale of AI-related revenue realization, semiconductors—and other capital-expenditure beneficiaries—have become focal points for financing concerns, with some participants already facing mounting liquidity stress.