Morgan Stanley Attributes Recent AI Selloff to Technical Factors and Profit-Taking

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According to Morgan Stanley, the recent AI selloff is primarily driven by technical factors and profit-taking. The firm maintains that the artificial intelligence supply chain still offers attractive risk-reward prospects after the recent pullback. Morgan Stanley expects AI computing demand to outpace supply in coming years and remains optimistic on AI capability expansion, application growth, and long-term capital expenditure increases related to artificial intelligence.
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