Morgan Stanley suggests market gains are broadening beyond semiconductors. Investors may shift focus to AI hyperscalers and other sectors. This rotation follows recent weakness in chip stocks and Fed rate expectations. Consumer discretionary, transport, and biotech shares could benefit from this shift. The brokerage notes hyperscalers have already experienced underperformance.

UBS reports AI infrastructure stocks have outpaced big tech hyperscalers as global AI capex forecasts surge to $423B in 2025 and potentially $820B by 2026.

Global brokerage Jefferies suggests the AI investment boom might falter not due to tech giants cutting spending, but investor impatience for returns. A significant wealth transfer…