Morgan Stanley’s Wilson Says Tech Rally Can Run Further on AI

US technology stocks have the scope to rally further as the buzz around artificial intelligence underpins a robust sales outlook, according to Morgan Stanley strategists.

The team led by Michael Wilson said revenue growth expectations for the biggest tech stocks have reached “multi-decade highs,” while valuations have declined after recent market volatility. At the same time, the rout in software stocks has opened up “attractive entry points” in some names like Microsoft Corp. and Intuit Inc.