Morgan Stanley Downgrades US IT Hardware Sector Amid Demand and Cost Concerns
Morgan Stanley downgraded the US IT hardware sector to cautious, citing slowing demand and rising costs. Stocks like Logitech and NetApp fell in response.
Insights:
Morgan Stanley has downgraded the US 
USIT hardware sector to "cautious" from "in-line," citing a confluence of slowing enterprise demand, rising component costs, and the weakest hardware budget growth in 15 years. This significant move, announced on January 20, 2026, has sent ripples through the market, leading to immediate stock declines among major hardware manufacturers and distributors.
USIT hardware sector to "cautious" from "in-line," citing a confluence of slowing enterprise demand, rising component costs, and the weakest hardware budget growth in 15 years. This significant move, announced on January 20, 2026, has sent ripples through the market, leading to immediate stock declines among major hardware manufacturers and distributors.
