Morgan Stanley has moved away from its previous directive to 'run it hot,' which aimed to maximize short-term deployment of capital in trading and principal strategies. The decision reflects caution over market volatility and a desire to manage risk by moderating position sizes and extending holding periods.

The firm’s equity research team warned that deepening memory-market headwinds—characterized by oversupply and falling chip prices—could drive additional declines in Qualcomm’s shares. Analysts noted that pressure on semiconductor revenue streams may persist into the next several quarters, heightening downside risk for technology stocks.