Morgan Stanley: AI Panic Brings Opportunities for Stock Pickers

Glonghui, February 25th｜Morgan Stanley strategists stated that the cross-sector excessive sell-off triggered by concerns over the disruptive impact of artificial intelligence has created opportunities for stock pickers. Investors should look for those "AI veteran enterprises," companies with strong growth, and high-quality firms to take advantage of price advantages and the market momentum brought by the widespread adoption of AI technology. Strategists, including Andrew Parker, said that for AI adopters with strong pricing power, the investment case is becoming increasingly solid. In the short term, the widespread application of artificial intelligence helps offset concerns about long-term changes faced by affected sectors and the broader market. The software industry is one of the sectors most severely impacted by investor panic, and the market seems to have assumed that existing companies cannot leverage AI innovation. On the contrary, strategists believe that AI is expanding the addressable market for enterprise software, and companies such as Microsoft, Intuit, and Atlassian are presenting "attractive entry points."