Morgan Stanley Identifies 20 Key AI Stocks as Adoption Accelerates

Katy Huberty, the Global Head of Research at Morgan Stanley, recently highlighted a list of 20 stocks from companies positioned to significantly benefit from the increasing use of Artificial Intelligence (AI).

Current Trends: Huberty emphasized that we are at a crucial moment or a "tipping point" when it comes to AI adoption. She noted that businesses that are effectively leveraging AI to enhance efficiency and profitability are now at an exciting juncture of growth.

In a discussion with Business Insider, Huberty explained that companies with strong pricing power will likely see the most considerable benefits. These are companies that can maintain or raise their prices thanks to strong customer demand. "Pricing power will enable these companies to keep the productivity gains they achieve from AI investments without needing to raise prices on their customers," she elaborated.

Her team has compiled a list of AI-innovative companies with a market capitalization exceeding $20 billion, which includes notable names such as The Home Depot, Inc. (NYSE: HD), Thermo Fisher Scientific Inc. (NYSE: TMO), Intuitive Surgical, Inc. (NASDAQ: ISRG), Deere & Co. (NYSE: DE), Spotify Technology (NASDAQ: SPOT), MercadoLibre Inc (NASDAQ: MELI), Marriott International Inc. (NASDAQ: MAR), Hilton Worldwide (NYSE: HLT), PACCAR Inc (NASDAQ: PCAR), Schlumberger NV (NYSE: SLB), Johnson Controls International PLC (NYSE: JCI), Axon Enterprise Inc (NASDAQ: AXON), Coupang Inc (NYSE: CPNG), Baker Hughes Co (NASDAQ: BKR), Experian PLC, Delta Air Lines Inc (NYSE: DAL), IDEXX Laboratories Inc (NASDAQ: IDXX), United Airlines Holdings Inc (NASDAQ: UA), and Halliburton Co (NYSE: HAL), among others.

Implications: The rapid adoption of AI has become a significant point of interest in various sectors, with organizations illustrating its potential to transform operations and enhance profitability.

Huberty’s focus on these 20 companies underscores the escalating significance of AI in business contexts. Organizations that effectively harness AI technologies are likely to gain a competitive advantage, especially if they possess strong pricing power. This trend may indicate a shift in investment approaches, with market participants increasingly inclined to seek out companies that demonstrate robust AI engagement as promising investment opportunities.

AI, Stocks, Investment