Morgan Stanley mapped 3 AI futures. One company wins them all.
Morgan Stanley analysts evaluated three potential future scenarios for the AI market, ranging from closed proprietary models to open-source dominance. They concluded that regardless of the outcome, companies providing the essential computing infrastructure, such as chipmakers and cloud providers, are positioned to win.
Why it matters
This analysis helps investors identify 'picks and shovels' plays in the AI sector that remain profitable despite market volatility or shifts in AI development models.
The main campus of a big tech company in Silicon Valley. Can you guess which one? Smith Collection/Gado/Getty Images Morgan Stanley strategists studied three potential AI futures. The bank looked at scenarios: Closed AI models win; open models prevail, and a hybrid outcome. One company in particularly will win no matter what happens, the strategists concluded. Will the AI future be closed or open , or a mixture of both? Morgan Stanley studied these three scenarios and found that some companies will win no matter what happens. In a research note this week, the bank's strategists laid out three possible paths for the AI market over the next few years. The winners change depending on which scenario plays out, but one theme stays remarkably consistent: The companies building the computing backbone that runs AI models and services will remain in a strong position regardless.
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