Morgan Stanley Names 8 Software Stocks as Overweight, Sees Recovery Opportunity

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According to Morgan Stanley's latest research, the firm maintains an Attractive rating on the software sector and names Microsoft, Palo Alto Networks, CrowdStrike, Cloudflare, Datadog, ServiceNow, Snowflake, and Shopify as top Overweight picks for the AI era. The report notes that over the past two years, the S&P North American Technology Software Index has lagged the Nasdaq 100 by 40% and the S&P 500 by 30%, but analyst Adam Wood argues the market has overestimated AI-related risks while overlooking new commercial opportunities in enterprise software and AI monetization.
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