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Investing.com -- Morgan Stanley made several notable adjustments to its U.S. All Cap Growth model portfolio, increasing exposure to semiconductors and software while exiting positions in healthcare and restaurants.
In a research note led by investment strategist Denny Galindo, Morgan Stanley said it increased positions in Broadcom (AVGO), Atlassian (TEAM), and Applied Materials (AMAT), while removing GE Healthcare (GEHC) and Chipotle Mexican Grill (CMG).
The bank also reduced its position in Advanced Micro Devices (AMD).
Morgan Stanley added to Broadcom because it is “a high-quality semiconductor and infrastructure software leader” with “diversified exposure to custom AI silicon, networking, and enterprise software.”
The analysts called valuation “compelling at ~30x FY27E EPS,” noting that “current multiples appear very reasonable” if expected 24%–28% earnings growth materializes.
For Atlassian, the firm cited its leadership in “Agile collaboration and workflow software” and noted that it benefits from strong network effects, adding that it currently trades at “an attractive valuation near 28x 2027E consensus EPS.”
Morgan Stanley added that Atlassian “should benefit from AI through cost reductions and user growth,” describing it as a “quality company” positioned for “accelerating revenue growth toward ~20% in FY28E.”
On Applied Materials, the analysts said it is “well-positioned to benefit from the ongoing memory capex upcycle and continued strength in semiconductor equipment demand.”
The firm exited GE Healthcare, citing underperformance and tariff exposure, and dropped Chipotle, saying it now prefers to “allocate risk to more durable secular growth themes.”
Morgan Stanley’s rebalancing reflects a tilt toward AI-driven semiconductor and software names and away from consumer and healthcare exposure.