AI Reshaping Business Competition Landscape: Morgan Stanley Reveals Five Investment Opportunities, Recommending Adobe (ADBE.US) and Amazon (AMZN.US)
Morgan Stanley has obtained intelligence that artificial intelligence is transitioning from experimental stages to large-scale deployment across various industries, accelerating operational efficiency and reshaping competitive advantages.
This report highlights the rapid progress of enterprise AI applications in both digital and physical domains, leveraging generative AI, automation, and machine learning to optimize supply chains, improve customer service, enhance financial forecasting capabilities, and accelerate research and development processes.
A recent survey of chief information officers by Morgan Stanley found that 60% of respondents expect generative AI-based workload to be deployed in production applications by the end of 2025, a proportion consistent with early-year findings. Core targets of corporate AI strategies include boosting internal productivity efficiency, saving labor costs, and developing customer-facing applications capable of generating revenue and satisfaction.
"Technological advancements are blurring the boundaries between digital intelligence and physical execution, creating new eras of operational agility," wrote the analysis team led by stock strategist Michael Weaver in the report. The report emphasizes that companies are leveraging self-development or strategic collaborations to customize AI solutions, reaping quantifiable benefits in terms of operational speed, accuracy, and security.
The report identifies five AI investment opportunities: from companies with strong pricing power and deep AI integration capabilities to those whose AI potential is underappreciated by the market.
After multi-dimensional screening, Adobe (ADBE.US), Amazon (AMZN.US), and Johnson Controls International (JCI.US) were highlighted as top-performing companies in AI applications, with artificial intelligence playing a core role in their business strategies.
Other prominent players in large-scale applications include NVIDIA (NVDA.US), Microsoft (MSFT.US), Alphabet (GOOGL.US), Meta Platforms (META.US), and Tesla (TSLA.US). Morgan Stanley has given these companies a "buy" rating, considering them to possess both AI technology enablers and application capabilities.
Despite industry differences in AI deployment (e.g., predictive maintenance in energy, fraud detection in finance, autonomous robots in manufacturing), the report believes this trend is universal and accelerating.
Morgan Stanley concludes that ""Artificial intelligence is becoming an important driver of operational efficiency and competitive advantage."