Morgan Stanley believes the sell-off in AI stocks, driven by concerns that the US election results might slow data center construction, appears excessive. The bank stated that AI spending is likely to continue expanding, noting that the planned 5 gigawatts of US data center capacity, originally projected for 2028, may be delayed until 2029, rather than canceled. Morgan Stanley stated that this leaves spending plans for hyperscale cloud service providers largely unchanged. Analysts say this delay could extend the AI investment cycle by easing supply constraints and supporting pricing; they remain bullish on major AI beneficiaries including Amazon, Microsoft, Meta, and Google, while also identifying opportunities in semiconductor, infrastructure, and software companies.