Morgan Stanley strategists wrote on Oct. 19 that the U.S. stock market pullback is nearing its end, recommending investors increase exposure to risk assets and citing stocks including Alphabet and Apple. They expect AI investment by major cloud providers and emerging cloud service providers to reach $1.6 trillion in 2027 and $1.8 trillion in 2028, with AI capital expenditure contributing a quarter of S&P 500 revenue growth in 2027.
Morgan Stanley CEO Ted Pick said on Oct. 14, 2026 that the firm is "double overweight" on AI infrastructure, with annual AI infrastructure spending averaging about $1 trillion, a level that may not accelerate but could persist for a decade; he also warned that AI spending growth will slow and the bank will adjust its stance based on market conditions.
In a research report released on Oct. 12, Morgan Stanley said market concerns over delays in deploying 800V DC power for AI data centers are overblown. Nvidia's native 800V racks may be delayed to the 2028 Feynman generation, but the technology transition remains unchanged; external 800V power modules are shipping as planned and Power Center is progressing. The OCP Global Summit from Oct. 12-15 may clarify the roadmap and serve as a positive catalyst for power management and analog semiconductor stocks.
Gokul Laroia, CEO of Morgan Stanley Asia, said AI is driving growing global investor interest in China's market, with the AI supply chain mostly rooted in the Asia-Pacific region and largely based in China. He said China is the only market besides the U.S. with an independent and comprehensive AI ecosystem that could generate US$3-4 trillion in incremental market value. He also proposed three measures for China's financial opening: institutionalizing the market, broadening product offerings, and reducing investment frictions.