Morgan Stanley rates the North American semiconductor industry as "Attractive," continues to favor Nvidia as top pick, and is also bullish on Broadcom.

Morgan Stanley's latest research report points out that near-term risks may cause the North American semiconductor sector to become more range-bound, but as share prices approach the lower end of the range, it leans toward buying. Morgan Stanley rates the North American semiconductor industry as "Attractive," continues to favor NVIDIA as its top pick, and is also bullish on Broadcom, while the risk-reward for SanDisk and Micron Technology is increasingly attractive. Morgan Stanley said the sub-sectors, ranked by preference, are GPU/XPU compute, memory, semiconductor production equipment, analog chips, networking chips, and CPU.