Morgan Stanley Picks Nvidia as Top AI Stock, Cautions of Potential Market Headwinds from AI-Driven Rally


Investment bank Morgan Stanley has said it is recommending technology firm Nvidia as its new top choice in a note to investors. It highlights Santa Clara-based Nvidia’s potential for growth in the artificial intelligence (AI) sector. Advanced Micro Devices had previously been Morgan Stanley’s leading pick, but analyst Joseph Moore sees a greater opportunity for near-term success with Nvidia. Moore cited Nvidia’s ability to consistently “beat and raise” its earnings per share, the attraction of major clients, and a growing investor interest in AI as reasons for the upgrade. The rising interest in AI for other companies could potentially affect non-AI legacy computer businesses within the semiconductor sector. Morgan Stanley warned that the impact of AI growth on the industry remained unclear, with the exception of Nvidia, which it expects to be its “2023 leader from the standpoint of numbers going up”.

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Frequently Asked Questions (FAQs) Related to the Above News

What is Morgan Stanley's top pick for AI stock?

Morgan Stanley's new top choice for AI stock is technology firm Nvidia.

Why has Morgan Stanley chosen Nvidia as their top pick for AI stock?

Morgan Stanley sees potential for growth in the AI sector with Nvidia due to their consistent ability to beat and raise their earnings per share, attraction of major clients and growing investor interest in AI.

Was Advanced Micro Devices previously Morgan Stanley's leading pick?

Yes, Advanced Micro Devices was Morgan Stanley's previously leading pick.

What does Morgan Stanley caution about potential market headwinds from AI-driven rally?

Morgan Stanley warns that the impact of AI growth on the industry remains unclear, and could potentially affect non-AI legacy computer businesses within the semiconductor sector.

Which company does Morgan Stanley expect to be their 2023 leader from the standpoint of numbers going up?

Morgan Stanley expects Nvidia to be their 2023 leader from the standpoint of numbers going up.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Meera Mehta
Meera Mehta
Meera is our dedicated writer and manager for the AI Stocks category. With her expertise in finance and a deep interest in the AI industry, Meera keeps a close eye on AI-related stocks and market trends. Her articles provide valuable insights into the financial aspects of AI, helping investors navigate this exciting and dynamic sector.

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