**[Morgan Stanley: AI Chip Cooling, Cloud Giants May Experience Rotation]** BlockBeats News, July 7 — Morgan Stanley strategist Mike Wilson's team believes that the recent pullback in semiconductor stocks may signal a more turbulent phase for U.S. equities, and the leading direction within AI trades could also shift. The firm notes that chip stocks have significantly outperformed the broader market, while major cloud computing platform companies have lagged behind. As the market reassesses the returns on AI capital expenditures, funds may flow from parts of the semiconductor supply chain to hyperscalers such as Microsoft, Amazon, Alphabet, and Meta. Wilson's team argues that the construction of AI infrastructure ultimately depends on sustained investment from cloud giants. If investors begin to believe these companies can expand profits while controlling expenses, the valuation recovery potential for cloud giants may reopen. Morgan Stanley also cautions that the market is no longer driven solely by a single AI narrative. Previously pressured sectors such as consumer discretionary and biotechnology may also attract allocation demand amid easing interest rate expectations and reduced oil price pressures.