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15 Best European AI Stocks According to Morgan Stanley

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In this article, we discuss the 15 best European AI stocks according to Morgan Stanley.

There are several ways that investors are approaching the artificial intelligence (AI) boom that has been sweeping global markets since the end of 2022. The most obvious bets have been placed in sectors like semiconductors, software, and biotechnology, at least that is what investors in the United States have been up to. However, the habits of their European counterparts seem a tad different. Across the pond, stock pickers have been making bull calls on more established names to ride the AI wave, namely the utilities, commodities, and professional data providers, among others. Economic experts are describing this as the next phase of investments in the AI universe.

For example, Bernie Ahkong, an analyst at UBS, recently noted that the first phase of AI was interest towards chipmakers (read more about this by accessing 33 Most Important AI Companies You Should Pay Attention To). In the second phase, investors moved towards the industrial companies (read more about this by accessing 20 Industrial Stocks Already Riding the AI Wave) which actually supply the components to the data centers. The present tilt towards utility and power firms is quite possibly the third phase of this AI focus. Analysts at investment bank Morgan Stanley echo these sentiments. In a recent investor note to clients, released last week, these expert stock pickers underlined that even though the chaos around prominent AI firms has somewhat subsided, an AI rumbling in Europe is just about to begin. They attribute it to historical similarities to the mid-1990s, just before the internet craze.

According to Morgan Stanley analysts, European semi stocks are experiencing a tactical correction and should make new highs in the coming months. A basket of these equities, handpicked by these experts, and nicknamed AI winners, has returned close to 45% on average since January 2023, the beginning of the AI revolution. These firms, some of which are discussed in detail below, have outperformed the 14% jump recorded by the MSCI Europe benchmark, per the research. One indication of this is the demand for data centers. Kevin Restivo of CBRE recently highlighted that demand for data center space in Europe is set to outstrip delivery of new stock for the third straight year and AI demand will exacerbate the issue.

Our Methodology

For this article, we selected companies based in Europe who have been benefiting from the AI boom. An important investor note by investment bank Morgan Stanley on European AI stocks formed the basis for this list. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A futuristic datacenter with servers and high-tech equipment, signifying the company’s cutting-edge digital technology.

Best European AI Stocks According to Morgan Stanley

15. Infineon Technologies AG (OTC:IFNNY)

Number of Hedge Fund Holders: N/A 

Infineon Technologies AG (OTC:IFNNY) designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Even as geopolitical tensions and rapid industry innovation hinder the growth path of the firm, there are growth catalysts like silicon carbide production and AI power business that are driving bullish sentiment towards the firm for the next two years. The company, which often goes under the radar of chip investors, has a thriving AI power business. Latest earnings reveal that the sales for the AI segment of the firm will double by next year to over €400 million.

Analysts expect Infineon Technologies AG (OTC:IFNNY) to achieve EPS growth of 17% in the next fiscal year and 26% in the year after that, with revenue growth of 9.5% in the former and 12% in the latter. The firm is also working on the development of digital tools, linked to AI, that enhance resilience against external factors like geopolitics and natural disasters.

14. EDP, S.A. (OTC:ELCPF)

Number of Hedge Fund Holders: N/A 

EDP, S.A. (OTC:ELCPF) engages in the generation, transmission, distribution, and supply of electricity in Europe, South America, North America, and internationally. It is based in Portugal. One of the reasons why this stock is attractive as an AI play is that it is performing well across most indicators even as power prices fall, making it an attractive choice to de-risk a growth-heavy portfolio. Earnings for the firm have continued to trend upwards despite low prices, the company has a low PE ratio, and is trading at a 34% discount compared to historical multiples. It also has an attractive yield and an unblemished payout history. The firm could work with regulators to increase payouts as it looks for fresh capital to fund AI infrastructure build.

UBS analyst Bernie Ahkong is bullish on EDP, S.A. (OTC:ELCPF), recently noting that one of the most interesting ways of playing the AI boom was with European utilities. This forecast seems grounded in reality. The International Energy Agency estimates that the total power consumption from data centers will be above 1,000 terawatt hours (TWh) by 2026, up from 460 TWh just two years ago.

13. Glencore plc (OTC:GLNCY)

Number of Hedge Fund Holders: N/A      

Glencore plc (OTC:GLNCY) is a United Kingdom-based firm that engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products. Commodity stocks like Glencore have fallen behind the obvious names during the AI rat race, their importance in the overall equation notwithstanding. Even as iron futures undergo a blip, copper demand has surged due to the electrician and AI trends sweeping the business world. Copper is an important raw material in AI data center build. Glencore reported a copper production of more than 1 million metric tons in 2023.

Glencore plc (OTC:GLNCY) is in a prime position to capitalize on rising copper demand. According to commodity trader Trafigura, copper demand linked to data centers and AI could add up to one million tons by 2030. This, in turn, would lead to supply deficits, driving prices upwards. The copper boom sits at the heart of the AI craze.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!