Disti Survey 2Q‘26: Broadly Holding Up

Research evidence excerpt

Disti Survey 2Q‘26: Broadly Holding Up

Foundation

July 20, 2026 06:03 AM GMT

Morgan Stanley & Co. LLCMSemiconductors | North America Joseph Moore

Equity Analyst

Disti Survey 2Q'26: Broadly Joseph.Moore@morganstanley.comNicole Kozhukhov +1 212 761-7516

Research Associate

Nicole.Kozhukhov@morganstanley.com +1 212 761-1636

Holding Up Wen Zhang, CFA

Equity Strategist

Wen.Zhang@morganstanley.com +1 212 761-1732

Disti responses remain constructive after the sharp 1Q step-up. Shane Brett

We expect strong JunQ prints, with leading indicators broadly EquityShane.Brett@morganstanley.comAnalyst +1 212 761-1022

holding into SepQ. Mason Wayne

Mason.Wayne@morganstanley.com +1 212 761-6012

Ella TulchinskyMLast quarter marked a clear turn in the cycle, and the 2Q26 survey suggests that Research Associate

strength is carrying into SepQ, albeit at a more measured pace. Expectations Ella.Tulchinsky@morganstanley.com +1 212 761-2222

remain healthy after seasonality, with no respondents expecting a decline in Analog Semiconductors

or MCU. Industrial held up, while Auto was mixed. The recovery remains healthy, North America

Industry View Attractive

though the rate of improvement has moderated after the sharp 1Q acceleration.

What’s Changed

Our AlphaWise analysis points to a similarly uneven but constructive setup. Texas Instruments (TXN.O) From To

Analog and MCU are shipping above demand, while Disti momentum eased as Price Target $221.00 $230.00

inventory-building intentions moderated. We view the deceleration as a more

measured continuation, rather than a reversal, as momentum remains positive and

the moderation has not been accompanied by weaker pricing or forward

expectations. The recovery continues to look demand-led, with selective