Morgan Stanley: AI stock sell-off appears overdone; data center delays may ease supply constraints and support pricing.

November 10: Morgan Stanley believes that the market's concern that the U.S. election results could slow data center construction, leading to a sell-off in AI-related stocks, appears overdone.

The bank stated that AI spending is likely to continue expanding, and noted that approximately 5 gigawatts of planned U.S. data center capacity originally expected in 2028 may be delayed to 2029 rather than canceled. Morgan Stanley said this leaves the spending plans of hyperscale cloud service providers largely unchanged.

Analysts said the delay could extend the AI investment cycle by easing supply constraints and supporting pricing; they remain bullish on major AI beneficiaries including Amazon, Microsoft, Meta, and Google, while also seeing opportunities in semiconductor, infrastructure, and software companies. (Jinshi)