AI Capex Fueling Strongest EM Earnings in Two Decades, MS Says

Emerging-market stocks are heading for their strongest stretch of earnings growth since the 2002-04 super-cycle, powered by a surge in artificial-intelligence investment that is reshaping the asset class, according to Morgan Stanley.

That’s in “sharp contrast to the past decade,” when second fiscal-year estimates were on average revised lower from initial levels, strategists led by Jonathan Garner wrote in a note.