Morgan Stanley Identifies Key AI-Driven Stocks Amid Tipping Point in Adoption

Katy Huberty, the Global Head of Research at Morgan Stanley, has brought attention to 20 stocks from companies poised to benefit from the growing adoption of Artificial Intelligence (AI).

Current Trends: Huberty indicated that we are experiencing a "tipping point" in AI technology adoption, emphasizing that businesses that leverage AI to enhance their earnings are likely to see substantial rewards.

In a discussion with Business Insider, Huberty highlighted that companies with strong pricing power—those able to keep or raise their prices due to high demand—will experience the greatest profit increases. "Pricing power will enable companies to retain the productivity benefits gained from these investments without having to transfer the costs to customers," she explained.

Her research team compiled a list of AI-using companies with market capitalizations exceeding $20 billion. Some notable names include The Home Depot, Thermo Fisher Scientific Inc. (TMO), Intuitive Surgical Inc. (ISRG), Deere & Co. (DE), Spotify, 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., and various others.

Significance: The rising trend of AI adoption has become a crucial subject across various sectors as more companies realize its potential to revolutionize operations and enhance profitability.

Huberty's selection of these 20 stocks highlights the increasing significance of AI in the business environment. Companies effectively utilizing AI technologies are poised to gain a significant competitive edge, especially those with robust pricing strategies.

This trend could indicate a shift in investment approaches, as investors may increasingly target firms with strong AI integration as appealing investment prospects.

Morgan, Stanley, AI