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Morgan Stanley: AI Fears Present Opportunities for Stock Pickers
Morgan Stanley strategists say that the cross-sector sell-off triggered by concerns over the disruptive impact of artificial intelligence has created opportunities for stock pickers. Investors should look for “AI veterans,” companies with strong growth, and high-quality firms to capitalize on price advantages and the market momentum driven by the widespread adoption of AI technology.Strategists, including Andrew Parker, noted that the investment case is becoming increasingly solid for AI adopters with strong pricing power. In the short term, the widespread adoption of AI helps offset concerns about long-term transformation facing affected sectors and the broader market.The software sector is one of the industries hardest hit by investor panic, as the market appears to have assumed that existing companies cannot capitalize on AI innovation. On the contrary, strategists believe that AI is expanding the addressable market for enterprise software, creating “attractive entry points” for companies such as Microsoft, Intuit, and Atlassian.
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