Morgan Stanley notes buy the AI dip, sees $3.4 trillion in hyperscaler spending through 2028
Morgan Stanley is urging market participants to buy the recent weakness in AI equities, arguing that the market has overreacted to the US midterm election results and their implications for data center construction. In a report titled Buy the Drop: AI Investment Opportunities Post the…
In this article
In the latest stock market today update, Morgan Stanley is urging market participants to buy the recent weakness in AI equities, arguing that the market has overreacted to the US midterm election results and their implications for data center construction, according to investingLive. In a report titled Buy the Drop: AI Investment Opportunities Post the US Midterms, the bank states that the AI investment cycle is still intact, even if political opposition to data centers pushes some construction projects into 2029.
Key points
- The bank's hyperscaler capex forecasts stay steady at $1.6 trillion in 2027 and $1.8 trillion in 2028.
- Morgan Stanley does not see projects already under construction to be disrupted.
- Even as underlying AI demand is still robust, Morgan Stanley cautions that the sector could see a traditional downcycle in 2028.
- Morgan Stanley anticipates AI-related debt issuance to rise in 2027.
- Morgan Stanley sees the latest selloff as an opportunity, but it is clearly not recommending buying every AI-related stock indiscriminately.
What happened: Stock market today
The bank's hyperscaler capex forecasts stay steady at $1.6 trillion in 2027 and $1.8 trillion in 2028, even though it flags some downside risk to the latter. Morgan Stanley does not see projects already under construction to be disrupted, leaving its 2027 forecasts on hold. Even as underlying AI demand is still robust, Morgan Stanley cautions that the sector could see a traditional downcycle in 2028, including margin normalization and earnings downgrades.
Morgan Stanley anticipates AI-related debt issuance to rise in 2027, but notes new data center developments and neocloud operators will face greater scrutiny from lenders. The broader message is that the AI buildout is not ending, but the winners may be changing.
Morgan Stanley sees the latest selloff as an opportunity, but it is clearly not recommending buying every AI-related stock indiscriminately.
Why stock market today matters for traders
Equity moves reflect expectations for earnings, interest rates and economic growth. Strong or weak results from large companies can shift sentiment across whole sectors and indices.
Stock-market sentiment also spills over into currencies: risk-on moods tend to favour higher-yielding currencies, while sell-offs often support safe havens.
Market reaction and data
On the currency side, the latest ECB daily reference rates (2026-11-09) show EUR/USD 1.1193, GBP/USD 1.3416, AUD/USD 0.6894, NZD/USD 0.5613, USD/JPY 157.95, USD/CHF 0.8187, USD/CAD 1.4103, USD/CNY 6.6728. These are reference fixes, not live quotes.
What to watch next for stock market today
Traders will track upcoming earnings, guidance from company management, bond yields and macro data that could change the rate outlook.
Key scheduled releases on the economic calendar:
- USD Core CPI m/m on Tue Nov 10, 13:30 UTC, forecast 0.2%, previous 0.3%
- USD CPI m/m on Tue Nov 10, 13:30 UTC, forecast 0.3%, previous 0.6%
- GBP GDP m/m on Thu Nov 12, 07:00 UTC, forecast 0.0%, previous 0.1%
- USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
- USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%
Follow every update in our Top 10 Forex News Today, read InvestingLive European news wrap: Markets await fresh US-Iran developments, US CPI data or see all of today's top market news.
FAQ
What is the latest stock market today news?
Morgan Stanley is urging market participants to buy the recent weakness in AI equities, arguing that the market has overreacted to the US midterm election results and their implications for data center construction.
Why do stock markets react to interest rates?
Higher rates raise borrowing costs and reduce the present value of future profits, which tends to weigh on stock valuations, especially for growth companies.
Where does this information come from?
This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
