Here's Morgan Stanley's 'shopping list' for semiconductor stocks to buy amid the turmoil
(This story is for CNBC Pro subscribers only.) As markets sell off, there could be some buying opportunities in chip stocks, according to Morgan Stanley. The firm created a "shopping list" of the top semiconductor stocks it recommends buying while the market is roiled with coronavirus fears. Nvidia and Western Digital are some of the stocks that top the list. "When the dust settles we do see alpha opportunities; as the selling has been driven by obvious macro concerns, we haven't seen much discrimination," equity analyst Joseph Moore said in a note to clients. Stocks have experienced a devastating rout in recent weeks as a spike in coronavirus cases in the U.S. and an oil price war has caused investors to fear about a slowing or stop to economic growth. The S & P 500 and Dow Jones Industrial Average are in a bear market, meaning they are down more than 20% from their recent highs. And chip stocks have not escaped the market turmoil. Nvidia is 26% and Western Digital is 45% off their 52-week highs. Despite the pullback, Morgan Stanley said fundamentally it sees strength in the sector, notably cloud computing. The firm said consumer spending on personal electronics, especially gaming hardware, is a near-term beneficiary of a lapse in other areas of discretionary spending. "Remote computing driven by working from home will also benefit, and both of those factors should be additive to overall cloud demand," said Moore. "Semiconductor end markets should capture a higher percentage of discretionary spending dollars in this environment, the key variable of course being macroeconomic impact to those dollars." Morgan Stanley also likes Ambarella , Broadcom , NXP Semiconductors , Amphenol Corp . and Cree . The firm has an overweight rating on all the stocks in its "shopping list." Morgan Stanley said it is keeping its in-line rating of the industry, as it is highly aware that supply and demand disruptions from the COVID-19 are a risk. — with reporting from CNBC's Michael Bloom.

Nvidia CEO Jensen Huang speaks during Mobile World Congress Americas in Los Angeles on Oct. 21, 2019. Patrick T. Fallon | Bloomberg | Getty Images