Morgan Stanley: Opportunities Exist in the AI Sector After U.S. Tech Stock Sell-Off

Glonghui, February 9th｜Morgan Stanley strategists pointed out that despite recent volatility in artificial intelligence stock trading and ongoing doubts about capital expenditures, the sector still has further upside potential. The team led by Michael Wilson noted that the market continues to undervalue AI application companies, while AI-enabled enterprises still enjoy fundamental benefits. Notably, the expected price-to-earnings ratio of the Tech Seven Giants has dropped to 27 times, which is only at the 12th percentile since the AI boom began in early 2023.