Morgan Stanley Identifies 20 Promising AI Stocks Amid Adoption Surge

Katy Huberty, the Global Head of Research at Morgan Stanley, has drawn attention to a selection of 20 stocks from companies poised to gain significantly from the increasing adoption of Artificial Intelligence (AI).

Current Landscape: Huberty believes we are at a critical juncture for AI adoption. She highlighted that firms that effectively integrate AI into their operations are on the brink of substantial profit boosts.

In a recent discussion with Business Insider, Huberty noted that companies with strong pricing power—those that can keep or increase their prices due to high demand—are likely to see the greatest positive impact on their earnings.

“Companies with strong pricing power can hold on to the productivity gains that arise from their investments, rather than having to pass those costs onto consumers,” she explained.

Huberty also referenced a list of stocks compiled by her team, emphasizing that these AI adopters possess high pricing power and have market capitalizations exceeding $20 billion. The highlighted companies include The Home Depot, Inc. (HD), Thermo Fisher Scientific Inc. (TMO), Intuitive Surgical, Inc. (ISRG), Deere & Co. (DE), Spotify Technology (SPOT), MercadoLibre Inc (MELI), Marriott International Inc (MAR), Hilton Worldwide (HLT), PACCAR Inc (PCAR), Schlumberger NV (SLB), Johnson Controls International PLC (JCI), Axon Enterprise Inc (AXON), Coupang Inc (CPNG), Baker Hughes Co (BKR), Experian PLC, Delta Air Lines Inc (DAL), IDEXX Laboratories Inc (IDXX), United Airlines Holdings Inc (UA), and Halliburton Co (HAL), among others.

Investment Significance: The rapid advancement of AI technologies is becoming a focal point across various sectors, with many recognizing its capability to transform operations and enhance profitability.

Huberty’s spotlight on these 20 stocks illustrates the escalating role of AI within the business realm. Companies that effectively harness AI are expected to enjoy a competitive edge, especially those equipped with robust pricing capabilities.

This emphasis on AI may indicate a shift in investment focus, where investors increasingly consider companies with strong AI initiatives as attractive opportunities.

AI, Stocks, Investment