The bank's top picks for "best positioned" stocks include German software and solutions provider SAP and French software developer Dassault Systèmes .
SAPA-FF YTD mountain Year-to-date performance of shares in SAP On SAP, Morgan Stanley's analysts said the company is likely to "benefit from price increases in 2023" as well as better product integration which will enable "strong cross-selling."
DSY-FR YTD mountain Year-to-date performance of shares in Dassault Systemes Meanwhile, they like Dassault Systèmes for its "highly recurring software business models with growth."
Elsewhere, Morgan Stanley says the likes of Microsoft , Adobe and Nvidia make good plays of the AI trend.
So far, the bank said that generative AI "remains in the early stages of the opportunity," based on data collected from recent funding activity and interviews with chief investment officers.
Persons:
Morgan Stanley, Adam Wood, Morgan, Morgan Stanley's, — CNBC's Michael Bloom
Organizations:
Dassault, SAP —, Dassault Systèmes, SAPA, SAP, Microsoft, Adobe, Nvidia
Locations:
U.S, Europe