Morgan Stanley Identifies 20 Key AI-Driven Stocks on the Rise

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

Recent Developments: Huberty noted that we are at a significant “tipping point” for AI adoption across various industries. She emphasized that businesses applying AI to enhance their operations and profits are about to gain considerable advantages.

In a recent discussion with Business Insider, Huberty pointed out that companies with strong pricing power—those that can maintain or raise their prices due to increased demand—will experience the largest profit boosts. She stated, “Pricing power will allow the companies to retain the productivity that they experience from these investments and not have to pass that on to the customer.”

Huberty’s research team compiled a list of stocks in a note to clients. The companies identified are all AI adopters and have market capitalizations exceeding $20 billion. The notable names on this list include 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.

Importance of AI Adoption: The rise of AI has become a significant topic, with many sectors recognizing its capacity to revolutionize operations and enhance profitability. Huberty’s list of 20 stocks highlights AI's growing influence in the business world. Companies that effectively harness AI technologies are likely to gain a competitive edge, especially those with robust pricing strategies.

This trend may lead to a shift in how investors approach the market, as they might increasingly focus on businesses that are effectively integrating AI into their operations.

AI, Stocks, Investing