Morgan Stanley-Thematics Edge AI The Catalyst We Needed-108829075

MJune23,202409:00PMGMTGlobalIdeaThematicsMorganStanley&Co.Internationalplc++44207425-0840+44207425-9902EdgeAI:TheCatalystWeEdwardStanleyNeeded+1212296-8083EquityStrategist+88622730-2989AswearguedinourEdgeAIprimer,AppleenteringtheEdgeAIEdward.Stanley@morganstanley.com+88622730-1725racehasbeenthecatalystweneededforinvestorstotake+44207425-3378noticeofthissub-theme.EdgeAIstocksarenowoutperformingMatiasOvrumPoweringAInames,whichhaddrivenmostAIalphageneration+8523963-1005in1H24.EquityStrategist+1212761-7516Matias.Ovrum@morganstanley.com+1212761-1946Forcontext,see:MorganStanley&Co.LLC•Thematics:TechDiffusion:EdgeAI–GrowingImpetus(7Nov)•GlobalTechnology:AIPCsToUsherInTheNextLegOfPCMarketGrowthErikWWoodring(21May)EquityAnalyst•Apple,Inc.:AMoreIntelligentAppleMakesItsDebut(11Jun)Erik.Woodring@morganstanley.com•GlobalTechnology:AISupplyChain–AppleWWDCimplications(17Jun)MorganStanleyTaiwanLimited+SincepublishingourEdgeAIprimer~7monthsago,EdgeAIhasquietlybeengatheringmomentum,waitingfora'mass-marketcatalyst'.Aswe,andourglobalHowardKaotechcolleagues,highlightedinourinitialwork,EdgeAIhasimplicationsacrossabroadrangeofuses,butconsumerproductswillbethefirsttomovetheneedle.WeEquityAnalystnowbelievethisisinmotion,withAppleandSamsunghavingdedicatedAIHoward.Kao@morganstanley.comstrategiesforsmartphones.Separately,Lenovo/De...