Morgan Stanley, UBS Diverge on AI Investment: Cloud Giants vs. Infrastructure Value, 600% Profit Growth Projected

According to BlockBeats, Morgan Stanley and UBS on July 6 presented diverging views on AI investment strategy. Morgan Stanley sees funds rotating from semiconductor stocks to hyperscale cloud providers like Microsoft, Amazon, and Meta, signaling a sector rotation rather than an end to the AI rally.

UBS, through its Holt team, projects AI infrastructure—particularly memory chipmakers—will deliver stronger long-term returns. The firm forecasts AI infrastructure economic profits will rise from approximately $200 billion in 2023 to $1.4 trillion by 2027, a roughly 600% increase, while cloud service providers' economic profits are projected to reach only $400 billion, positioning memory chips as a key value creator in the AI supply chain.