Where is the next AI Trade? Morgan Stanley: Discover Alpha from the 'AI Diffusion Rate'.
Analysts believe that the diffusion rate of AI will continue to drive excess returns, with the Software Sector potentially outperforming the Semiconductors Sector due to the widespread adoption of AI agents. As the diffusion rate increases, the Financial Sector may present significant trading opportunities similar to those of AI Electric Power.
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Will the US stock market experience a wave of spin-offs? Historically, after companies split, stock prices tend to outperform the Large Cap.
A report from Trivariate Research shows that by 2025, the pace of spin-offs for companies in the USA will accelerate, and historically, newly established companies will provide significant returns to investors.
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