Morgan Stanley IM Is Hunting for AI-Proof Assets

Morgan Stanley Investment Management is adding to emerging-market bets that are insulated from the artificial intelligence boom as it positions for a potential pullback in the crowded tech trade, according to Deputy Chief Investment Officer Jitania Kandhari.

Rising concern over stretched valuations and heavy capital spending by US technology giants has pushed the Nasdaq 100 Index to its first loss-making start to a year since 2022. The unease is echoing across developing markets, where nearly half of a $12 trillion rally since April has been concentrated in AI-linked stocks.