Stock forecast 2025 morgan Stanley’s "stock forecast

Morgan Stanley’s "stock forecast 2025" suggests that tech megacaps could account for over 35% of S&P 500 market cap by mid-year, with AI and cloud computing leading revenue expansion. Jabil now gets 30% of its top line from the AI business. That figure could move higher in fiscal 2026. The company expects a 25% spike in its AI revenue this fiscal year. Overall revenue, meanwhile, is expected to jump just 5%. Looking forward, even though we forecast the rate of economic growth to slow on a sequential basis over the next few quarters, we think that investors searching for value will focus on the small-cap space, looking for undervalued opportunities that have been overlooked and left behind as AI has absorbed all the oxygen in the market this year. Research from Goldman Sachs indicates the "stock forecast 2025" will benefit from lower inflation expectations, reinforcing dividend growth strategies in energy and utilities, while cyclical stocks may face mild volatility.