Morgan Stanley removes Nvidia from its top pick list.

Leading cloud providers with ready-made computing power and financing advantages, data center suppliers whose stock declines may exceed the impact of orders, and software companies and adopters that are the first to integrate AI into enterprise operations.

Storage shortage spurs new architectures, with Cerebras, Marvell and others poised to benefit.

Morgan Stanley believes that AI trading may shift from semiconductor to cloud giants such as Microsoft, Amazon, Meta, etc. The market focus is shifting from chip supply to AI monetization capability, and the capital expenditure, cloud revenue, and profit margin in subsequent financial reports will determine whether the rotation can be sustained.