MS - Morgan Stanley's Top Fund Manager Says This Utility Stock Could Win Big From AI Demands | Benzinga
A top Morgan Stanley fund manager has identified a stock that could potentially benefit from the increasing power demands of artificial intelligence (AI).
What Happened: Aaron Dunn, who manages the Morgan Stanley U.S. Value Fund, has highlighted the growing power needs of AI as a potential investment opportunity in the utility sector, reported CNBC.
Dunn pointed out that the “next big bottleneck” for hyperscalers, who are major players in cloud computing for AI applications, will be power or fiber. He believes that the power needs of AI and the data center and cloud compute environment could be the next hindrance to their growth.
Identifying utilities as a potential investment, Dunn specifically named CMS Energy Corporation (NYSE:CMS) as a stock to watch. He emphasized the company’s focus on renewable energy, which aligns with the green energy initiatives of many hyperscalers.
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Another stock Dunn mentioned was Emerson Electric (NYSE:EMR), ...