TLDR:
Buying stocks with a rising exposure to artificial intelligence could lead to outperformance later this year, according to Morgan Stanley. The investment bank highlighted a group of stocks where AI is becoming core to their investment thesis, known as “the enablers.”
- The AI revolution has powered the current bull market rally, with Nvidia leading the way.
- Morgan Stanley believes that investing in stocks where AI materiality is increasing will continue to be profitable for investors in 2024.
Rising AI adoption is evident in companies like Solar technology company First Solar, semiconductor manufacturer Broadcom, and social media platform Meta Platforms. Analysts are generally bullish on these stocks and see potential upside in their prices.
Key Elements of the Article:
The artificial intelligence revolution is driving the current bull market rally, with Nvidia experiencing significant growth in its AI-related technologies. Morgan Stanley recommends investing in stocks where AI is core to their business strategies, known as “the enablers.”
Companies like First Solar, Broadcom, and Meta Platforms have seen positive stock performance this year, with analysts projecting potential upside in their prices. Analysts are generally bullish on these companies, highlighting their strong AI portfolios and innovative approaches to technology.