Morgan Stanley analyst Joseph Moore downgraded GlobalFoundries to Equal Weight from Overweight with a price target of $43, down from $53. The firm sees potential wafer pricing pressure from both TSMC and China’s competition. The analyst does not see any improvement, saying the exiting Q2 semi inventory days were still high. The artificial intelligence PC and AI smartphone replacement cycle Morgan Stanley expected did not take place in the second half of 2024, the analyst tells investors in a research note. The firm cites a slower semi market recovery and more challenging competitive backdrop for the downgrade of GlobalFoundries.