Morgan Stanley picks global stocks to play a $100 billion AI boom, giving one 40% upside

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Demand for AI 'enablers' is surging, Morgan Stanley says, and a number of companies in Asia are set to benefit in a big way.

Demand for AI "enablers" such as power producers, grid operators and data centers is surging, according to Morgan Stanley, and a number of Asian companies are set to benefit. Data center capacity in both Asia and the U.S. is expected to grow at a compound annual growth rate of 20% between 2023 and 2027, the investment bank's analysts wrote in a May. 15 research note. Meanwhile, Asia's power needs for data centers is expected to double by 2027.

Shares in Tenaga are also included in the iShares MSCI Malaysia ETF and Global X FTSE Southeast Asia ETF Morgan Stanley has a target price 17.20 Malaysian Ringgit on the Bursa Malaysia-listed stock, giving it around 36.5% upside potential. Sembcorp Industries Singapore's power and energy operator Sembcorp Industries is another company on Morgan Stanley's watchlist. The company operates the "largest solar energy portfolio" in the city-state, the bank's analyst wrote.

 

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