AI Revolution: 20 Top Stocks Poised for Profit Surge in Morgan Stanley’s “Tipping Point” Analysis
Staff Editor Morgan Stanley Identifies AI-Driven “Tipping Point” in Business Profitability
Morgan Stanley’s Global Head of Research, Katy Huberty, has highlighted a significant “tipping point” in the adoption of artificial intelligence (AI) technology by businesses. According to Huberty, companies are increasingly leveraging AI to enhance their profitability, with those possessing strong pricing power expected to reap the most substantial benefits from AI investments.
Huberty emphasizes that pricing power will be crucial for companies to retain productivity gains derived from AI implementation. This trend is part of a broader, long-term increase in AI-related investments across various industries.
“Businesses with the ability to maintain or increase prices will see significant profit impacts,” Huberty stated. “Pricing power allows companies to keep productivity gains without passing costs to consumers.” She further suggested that pricing power would be a key factor for generating alpha in the current year.
In light of this trend, Huberty’s team at Morgan Stanley has identified 20 stocks with market capitalizations exceeding $20 billion that demonstrate strong pricing power and are actively adopting AI technologies. These companies are well-positioned to leverage AI for enhanced profitability.
The list of notable stocks includes industry leaders from various sectors:
- Home Depot (HD) – Consumer Discretionary, $414.3 billion market cap
- Thermo Fisher Scientific (TMO) – Healthcare, $210.5 billion market cap
- Intuitive Surgical (ISRG) – Healthcare, $192 billion market cap
- Deere & Co. (DE) – Industrials, $120.5 billion market cap
- Spotify Technology (SPOT) – Communication Services, $95.3 billion market cap
Other prominent companies on the list include Mercadolibre (MELI), Marriott International (MAR), Hilton Worldwide (HLT), PACCAR (PCAR), and Schlumberger (SLB).
The diverse range of sectors represented in this list, including consumer discretionary, healthcare, industrials, energy, and communication services, underscores the widespread potential for AI adoption across the business landscape.
As companies continue to invest in AI technologies, investors and industry observers will be closely watching how these firms leverage their pricing power to maximize the benefits of AI-driven productivity gains.
