Executive Summary
Morgan Stanley identifies a structural quality shift defending current AI valuations against bubble comparisons. Net profit margins now run at 14% versus 8% during the 1990s tech bubble, driven by technology's larger index weight and superior operational efficiency. The firm argues premium multiples are justified when adjusted for this margin expansion and improved index composition. This creates a variant perception against widespread overvaluation concerns. The investment case strengthens with...
Key Investment Opportunity
Small Cap Rotation Play
Early cycle earnings recovery with policy tailwinds should drive broader market participation beyond mega-cap AI leaders
...and 1 more investment opportunities
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