MORGAN STANLEY FAVORITE AI STOCK IS 92 % EXPOSED TO THE $1.6 TRILLION BUILDOUT IT BULLISH ON

What happened: Morgan Stanley published an Oct. 15 note calling Nvidia its favorite AI stock, with 91.7% of Nvidia's 2027 revenue exposed to AI infrastructure demand, the highest on the bank's list. Key numbers: Hyperscaler and AI cloud spending estimated at $1.58 trillion in 2027, up about 60% from about Why it matters: The bank calls Nvidia the best risk/reward in the sector and says multiple expansion is not required for the stock to work. The same note warns Wall Street is underprepared for downside cuts and cites a projected 32-gigawatt U.S. data center power shortfall through 2028.

Morgan Stanley published an Oct. 15 note calling Nvidia its favorite AI stock, with 91.7% of Nvidia's 2027 revenue exposed to AI infrastructure demand, the highest on the bank's list.

The bank calls Nvidia the best risk/reward in the sector and says multiple expansion is not required for the stock to work. The same note warns Wall Street is underprepared for downside cuts and cites a projected 32-gigawatt U.S. data center power shortfall through 2028.