Morgan Stanley's Wilson Says AI Cycle Just Getting Going

Morgan Stanley’s Chief US Equity Strategist Mike Wilson reaffirmed the firm’s bullish S&P 500 target of $7,800 by year-end 2026, citing sustained momentum in AI-driven growth. Wilson dismissed concerns about an AI slowdown, calling it premature to "throw a cold blanket" on the cycle, signaling confidence in prolonged tech sector expansion. The remarks, made in a February 2026 interview, underscore Morgan Stanley’s view that AI adoption remains in early stages, with significant upside for equities. The strategist’s stance contrasts with market skepticism, emphasizing AI’s transformative potential as a long-term driver of corporate earnings and stock valuations. Wilson’s outlook aligns with broader Wall Street optimism on AI, reinforcing expectations for continued capital flows into tech-heavy indices.