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StocksMedium•11 February 2026•

1 min read

Morgan Stanley Sets New AI Stock Criteria, Emphasizing ROE Amid Market Shakeout

Morgan Stanley strategists have introduced new criteria for identifying winning stocks within the artificial intelligence (AI) sector. This guidance emerges as the AI market experiences a "shakeout," prompting a significant shift in investor focus. The market is now increasingly demanding tangible proof of Return on Equity (ROE) from AI-related investments, moving beyond mere speculative growth. Their comprehensive analysis evaluated 3,600 stocks to pinpoint the most promising investment opportunities. This strategic advice aims to equip investors with a robust framework to navigate the evolving landscape of AI stock valuations. The emphasis on ROE signifies a maturation in how AI investments are assessed, favoring companies with demonstrable financial returns.