Morgan Stanley says AI investment shifting from chipmakers to hyperscalers
Morgan Stanley thinks the big money in AI is shifting gears, from chipmakers to tech giants called hyperscalers (think Amazon and Google) and even sectors like transport, biotech, and consumer discretionary.
This comes after chip stocks took a hit recently, partly because of changing US Federal Reserve rate expectations.
Hyperscalers haven't been market stars lately, but with smarter spending on AI infrastructure, they could be next in line for growth.
Semiconductor slump may prompt investor rotation
The drop in semiconductor stocks has shaken up the broader market, but some major tech firms are already bouncing back.
Morgan Stanley points to falling oil prices and hopes for fewer interest rate hikes as reasons why investors might start looking at industries that were overshadowed by the chip rally.
In short: AI investment is spreading out, so keep an eye on more than just semiconductors this year.