Analysts from Morgan Stanley came away from the Wall Street bank’s big tech conference last week with greater conviction on a handful of tech companies. In early March, Morgan Stanley hosted its annual Technology, Media & Telecom conference in San Francisco, where dozens of companies, including Microsoft , Nvidia , and Walmart , gave their view on AI trends, opportunities and risks. Coming out of the conference, top analysts from Morgan Stanley spotlighted several technology companies it views as leaders in areas as varied as semiconductors, media and e-commerce. Nvidia, for example, remains a top pick at the investment bank after CEO Jensen Huang spoke at the conference, addressing the AI chipmaker’s capex funding and arguing that “compute equals revenues.” “AI remained the dominant focus, with virtually every company discussing its strategy as either an AI enabler and/or an AI adopter,” Morgan Stanley analysts led by strategist Michelle Weaver wrote to clients on Tuesday. “This year, the discussion took a leap forward. Nearly every company spoke about deploying AI more deeply across multiple business units rather than experimenting at the margins,” the note continued. Take a look at Morgan Stanley’s highest-conviction stocks within its TMT universe: Amazon , Nvidia and Western Digital each have more than 40% potential upside ahead, based on Morgan Stanley’s 12-month price targets on the stocks. For example, analyst Brian Nowak, who covers Amazon, has a $300 price target on the dominant e-commerce platform. He believes Amazon’s high-margin businesses will fuel greater profits, while also allowing it to invest in last mile delivery, Prime Now; Fresh; Alexa; Amazon Web Services and more. “Amazon Prime membership growth drives recurring revenue and positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through,” Nowak wrote of Amazon. Amazon’s performance this year shows investors are less bullish. Shares have lost about 7% on concerns about Amazon’s recent quarterly earnings miss and its $200 billion capital spending forecast for 2026, which was higher than the Street’s capex estimates. Morgan Stanley also has high conviction in Nvidia, with analyst Joseph Moore citing strong demand for the chipmaker’s Blackwell line. “We see continued upward pressure to estimates as demand strength continues, with Rubin expected to maintain Nvidia’s performance leadership position,” the note said, referring to the Rubin platform , an AI computing architecture that’s the successor to Blackwell. Morgan Stanley analyst Benjamin Swinburne sees opportunity ahead in Spotify and T-Mobile too. Swinburne spotlighted Spotify as the “market leader in subscription streaming, with growing user engagement, and we believe scale brings an opportunity for ancillary revenues including podcasts and artist/label tools.” The 3 billion global smartphone market, excluding China, is a large opportunity for Spotify, since its market penetration today is just 15%, the analyst said. Spotify’s current advertising business is also just a “fraction” of the total $20 billion global radio ad market, he said. Spotify said in February that fourth-quarter ad-supported users reached 476 million, beating Wall Street estimates and sending the shares 15% higher in reaction. Spotify has held on to most of that gain in the month since, rising more than 11%.
Morgan Stanley likes these tech stocks the most after its big conference
view original post