AI set to add up to $16 trillion to S&P 500: Morgan Stanley

Morgan Stanley estimates that AI could add between $13 trillion and $16 trillion in long-term market value, which is up to 29% of the index's SPX current value.

The US bank added that this growth in the index's market value will be driven by expected annual returns from the adoption of artificial intelligence, reaching $920 billion, distributed between AI agent technologies and the use of new robotics technology.

Globally, companies are expected to spend approximately $3 trillion on AI infrastructure, such as chips and servers, by 2028, with strong returns expected from cost reductions and widespread adoption of new technologies, according to Reuters.

The bank emphasized that full corporate adoption of AI is still a long way off, but entities that have integrated these technologies into their operations are already seeing results.