Morgan Stanley and UBS Diverge on Main AI Investment Themes: The Former Favors Cloud Service Providers Rotation, While the Latter Bets on a Revaluation of AI Infrastructure

BlockBeats news, July 6, as sector rotation within the US stock AI sector intensifies, Morgan Stanley and UBS have given different judgments on the main themes for the next phase of AI investment. Morgan Stanley believes that capital is shifting from the previously surging semiconductor sector to hyperscale cloud service providers such as Microsoft, Amazon, and Meta. The AI rally is not over, but has entered a phase of sector rotation.

UBS, on the other hand, is more optimistic about the long-term value creation potential of AI infrastructure. Its Holt team expects that the profitability of memory chip companies such as Samsung Electronics, SK Hynix, and Micron will continue to improve, and the economic profit of the AI infrastructure sector may increase from approximately $200 billion in 2023 to $1.4 trillion in 2027, a rise of about 600%. During the same period, the economic profit of large cloud service providers is expected to only increase to around $400 billion. UBS believes that the memory chip industry is transforming from a traditional cyclical industry into one of the most important value creators in the AI industry chain.