UMC upgraded to Overweight at Morgan Stanley amid node capacity shortage

As previously reported, Morgan Stanley analyst Charlie Chan upgraded UMC (UMC) to Overweight from Equal Weight with a price target of NT$138, up from NT$68. AI power integrated circuits – ICs – sit at the core of future AI infrastructure and are growing as fast as, if not faster than, AI GPUs, with the firm anticipating a “mature node capacity shortage” in the second half of 2027, the analyst tells investors in a research note. Morgan Stanley further states that UMC trades at an attractive valuation with earnings upside from strong or mature demand.