US Stock Market Move | Chip stocks turn losses into gains; Seagate Technology Holdings PLC (STX.US) rises over 2%.

On Tuesday, the Philadelphia Semiconductor Index continued to climb during intraday trading, rising more than 1%. Chip stocks turned losses into gains. Seagate Technology Holdings PLC (STX.US) fell more than 2% at one point intraday, but as of press time was up more than 2%. Western Digital Corporation (WDC.US), Advanced Micro Devices, Inc. (AMD.US), Micron Technology, Inc. (MU.US), and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose more than 1%. On the news front, Morgan Stanley maintained its "Overweight" rating on Seagate and Western Digital, reinstated Seagate to Morgan Stanley's IT hardware "Top Pick" list, and raised its target price from $1,187 to $1,200; it slightly lowered its target price for Western Digital from $676 to $643, but viewed the stock as a more attractively risked tactical allocation and investment opportunity ahead of earnings disclosure. Morgan Stanley's core judgment is that the HDD super upcycle is still continuing, and that the share prices had previously priced in peak earnings and intensifying price competition in advance and to an excessive degree.