Morgan Stanley Identifies 20 Key AI-Driven Stocks as Technology Adoption Accelerates

Katy Huberty, the Global Head of Research at Morgan Stanley, has highlighted 20 stocks from companies that are well-positioned to benefit significantly from the growing adoption of Artificial Intelligence (AI).

Overview: Huberty indicated that we are approaching a crucial moment for AI adoption. She emphasized that companies leveraging AI to enhance their profitability are on the brink of realizing substantial rewards.

In a conversation with Business Insider earlier this month, Huberty noted that businesses with strong pricing power will see the most pronounced impact on their earnings. These are the firms able to maintain or elevate their prices in response to high demand.

“Having pricing power enables companies to hold onto the gains in productivity resulting from their AI investments without having to transfer those costs to customers,” she stated.

Huberty's team compiled a list of stocks in a client note. These stocks, characterized by AI adoption and significant pricing power, have market caps exceeding $20 billion. The roster features names like The Home Depot, Inc. (HD), Thermo Fisher Scientific Inc. (TMO), and Intuitive Surgical, Inc. (ISRG). Other entities on the list include 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), Halliburton Co. (HAL), and several others.

Significance: AI adoption has generated increasing interest across various industries, as companies recognize its potential to transform operations and improve profitability.

Huberty’s identification of these 20 stocks highlights the growing significance of AI in the corporate landscape. Firms that can effectively harness AI technologies are expected to gain a notable competitive advantage, especially those with robust pricing power.

This trend may influence investment strategies, leading investors to gravitate toward companies demonstrating strong AI adoption as appealing investment opportunities.

AI, Stocks, Profitability