Latest news with #Morgan Stanley
Yahoo
3 hours ago
- Business
- Yahoo
How Much Will S&P 500 Companies Benefit From AI Adoption?
Key Takeaways Morgan Stanley estimates AI adoption could translate into annual net benefits of some $920 billion for S&P 500 companies, though it could take years to achieve and there is substantial risk that the benefits won't be fully realized. AI could address shortfalls in the labor market "rather than killing jobs," according to Morgan Stanley. Wells Fargo economists say the "high-tech" category currently accounts for a modest portion of U.S. manufacturing, but is poised to expand. Artificial intelligence giveth and taketh away, but it might be more of the former than the latter. Morgan Stanley estimates the annual net economic benefit in AI adoption alone could lead to roughly $920 billion, or about 28% of S&P 500 estimated consensus pretax earnings for 2026, after implementation costs. That would translate into $13 trillion to $16 trillion in market value creation. The firm's analysts note, however, that it would take many years to achieve, with substantial risk of companies not realizing the benefits of full adoption. That economic value creation is expected to come from a mix of cost cutting as well as new revenue and margin generation, Morgan Stanley strategists including Stephen Byrd wrote in the report. The value is expected to come from an almost even split between agentic AI, or software, and embodied AI, human-like robots. Adoption of new technology, including artificial intelligence, could be a net positive for the job market, contrary to fears of becoming obsolete, or FOBO, per analysts and economists. Though job displacement is possible, underlying labor market trends point to a glass half full. "Rather than killing jobs, AI might address a shortfall in workers," the analysts wrote in the report. Consider comparably impactful technological advances including the adoption of the computer, which in the 1990s led to an influx of jobs for computer scientists and programmers, and the biggest declines for secretaries, bookkeepers, accountants, and auditing clerks, the report has applied quantitative analysis to identify jobs that were the most and least exposed to AI, using a dataset of 200,000 anonymized conversations between users and its public generative AI system Bing Copilot. Jobs most exposed to AI involve brains, and those least exposed, brawn. Spending in new tech taken together—in software; research and development; information processing equipment; and manufacturing facility construction—show business leaders' prioritizing investments of that ilk more than any other category, Wells Fargo economists wrote in a report published Monday. Analyzing spending solely in equipment also shows firms putting a down payment on a "high-tech future," allocating more in information processing than transports and industrial equipment, combined, they said."This might be just the beginning of a high-tech production boom," the firm's economists Shannon Grein and Tim Quinlan wrote. "High-tech currently accounts for just around 3% of domestic manufacturing in the U.S., but capacity looks set to expand amid the evolution in the sorts of factories we're building in America today." Read the original article on Investopedia Sign in to access your portfolio
Bloomberg
6 days ago
- Business
- Bloomberg
Morgan Stanley Sees Brazil Bond Sales Setting $30 Billion Record
By , Matheus Piovesana, and Rachel Gamarski Save Morgan Stanley said Brazilian issuers will probably sell a record $30 billion in global bonds this year, as international debt markets remain open even in the face of rising US tariffs. 'The market is really receptive,' Gustavo Siqueira, co-head of fixed-income capital markets for Latin America at Morgan Stanley, said in an interview. 'What's happening from a political and macro-geopolitical perspective hasn't changed the appetite.'
Bloomberg
07-08-2025
- Business
- Bloomberg
President Trump Urges Intel CEO to "Resign, Immediately"
Get a jump start on the US trading day with Matt Miller and Katie Greifeld on "Bloomberg Open Interest." President Trump called on the CEO of Intel to resign because of what he called conflicts of interest. Morgan Stanley's Mike Wilson says we're in a new bull market. Robert Kaplan, the Former Dallas Federal Reserve Bank President and Vice Chairman at Goldman Sachs joins us to discuss the Fed's next move. And Fed Governor Christopher Waller is emerging as a top candidate to replace Fed Chair Jerome Powell. Mark Barrocas, SharkNinja CEO and e.l.f Beauty CFO Mandy Fields joins Open Interest to discuss the impact of tariffs on their businesses. And Firefly Aerospace set to blast into public markets today. We'll talk to the company's CEO Jason Kim. (Source: Bloomberg)
Yahoo
07-08-2025
- Business
- Yahoo
Nvidia Stock Climbs as Wall Street Hikes Targets Ahead of Earnings Blowout
Aug 7 - Nvidia (NASDAQ:NVDA) shares rose about 2% Thursday after several major Wall Street firms raised their price targets ahead of the chipmaker's second-quarter earnings, set for Aug. 27. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Analysts from Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) pointed to strong demand for artificial intelligence infrastructure and Nvidia's Blackwell platform as key drivers of potential growth. Morgan Stanley now sees shares reaching $200, up from $170. Bank of America reaffirmed its Buy rating and maintained a $220 target, while Goldman Sachs lifted its target to $200, citing expectations for a beat-and-raise quarter. Analysts flagged investor focus on Blackwell's chip ramp, margin expansion potential, and China's H20 chip rollout. Estimates compiled by FactSet suggest Nvidia will post earnings of $1 per share on $45.7 billion in revenue. The stock is up nearly 34% year to date. Nvidia also inched up 1% in premarket trading as optimism builds heading into the earnings call. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
05-08-2025
- Business
- Yahoo
Tariffs Starting to Slow Growth: Morgan Stanley's Zezas
Michael Zezas, Morgan Stanley's head of U.S. public policy research, says that over the next two to three months, we need to look carefully at inflation, labor data, as well as, product-by-product breakdowns to understand how the economy is absorbing tariff actions. He speaks to Romaine Bostick and Scarlet Fu on "The Close." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
