Morgan Stanley-Thematics Edge AI Product Releases on Track, but Where Are...-106194745

MJanuary28,202409:00PMGMTGlobalIdeaThematicsMorganStanley&Co.Internationalplc++44207425-0840+44207425-9902EdgeAI:ProductReleasesonEdwardStanleyTrack,butWhereAreKiller+8523963-1005Apps?EquityStrategist+1212296-8083Edward.Stanley@morganstanley.com+44207425-3378EdgeAIisprogressingfasterthanwewouldhaveanticipated2+1212761-3793monthsago.Fromourconversations,webelieveinvestorsareMatiasOvrum+1212761-1946toofocusedonKillerAppsandnotappreciatingthesweepingeffectsofAIinhardwaredevices.4Gto5GprovidestheEquityStrategistprecedent.Samsungisemergingasthecatalyststock.Matias.Ovrum@morganstanley.comKeyTakeawaysMorganStanleyAsiaLimited+EdgeAIismovingintothehardwareverticalsweoutlinedinourreporttwoShawnKimmonthsago.SmartphonesandPCsareseeingthebiggestjumpsinproductreleasesandEquityAnalystpipeline.Shawn.Kim@morganstanley.comWethinkinvestorsaretoonarrowlyfocusedonsearchingforKillerApps.Instead,lookforOEM-ledhardwareupgradesforOS,camera&othernativefeatures.MorganStanley&Co.LLCTheshiftfrom4Gto5GPC&Smartphonegivesinvestorsaroadmapforreplacementcycles.ErikWWoodringForcontext,see:EquityAnalystErik.Woodring@morganstanley.com•Thematics:TechDiffusion:EdgeAI–GrowingImpetus(7Nov2023)•Apple,Inc.:GettingMoreBullishonApple's'EdgeAI'Opportunity(8JanMorganStanley&Co.Internationalplc+2024)LeeSimpson•Thematics:EmergingThemeTracker(25Jan2024)...