Morgan Stanley says load up on these 13 AI power infrastructure stocks

Morgan Stanley's equity research team has identified a portfolio of 13 AI infrastructure power stocks, signaling conviction that recent weakness in the semiconductor and data center segments reflects technical selling rather than fundamental deterioration. Analyst Stephen Byrd's positioning suggests institutional confidence in the secular demand thesis underpinning AI buildout.

The recommendation highlights a critical distinction in market dynamics: the thesis separates price action driven by momentum unwinding or portfolio rebalancing from actual earnings or competitive deterioration. This framing is bullish for infrastructure beneficiaries like NVDA, AVGO, and broader semiconductor exposure, implying dips may attract institutional capital rather than signal distress in the AI capex cycle.

The 13-stock basket likely encompasses power delivery, cooling, and semiconductor enablement plays critical to scaling AI data center infrastructure. This positions the recommendation as a vote of confidence in the magnitude and durability of AI-driven capital expenditure cycles, particularly among hyperscalers committed to foundation model training and inference deployment.

Sector implication: Technology and industrials sectors benefit from accelerated AI infrastructure deployment; semiconductor and semiconductor equipment subsectors remain structural beneficiaries despite near-term volatility. The call underscores institutional conviction that AI capex cycles remain in early innings.