Morgan Stanley: AI merger and acquisition boom shows a "full spectrum" development trend

Golden Ten Data reported on May 21 that Wally Cheng, Morgan Stanley's Global Head of Technology M&A, stated that as companies race to fill technological gaps in chips, power, networks, and infrastructure, mergers and acquisitions in the artificial intelligence sector are taking place at all scales and expanding across multiple industries. Cheng said, "I believe deal activity will span the entire spectrum, including both private and publicly listed companies." While semiconductors that power AI are in the spotlight for their "technological marvel" properties, Cheng noted that the infrastructure surrounding these chips carries immense value as well, including sectors like networking, storage, energy, and real estate. Cheng stated that valuations in the AI industry are still "very challenging" because a balance must be struck between the "unicorns and rainbow scenarios full of imagination" and actual execution risks. Tammy Kiely, Senior Managing Director of Evercore's Technology Investment Banking, shared a similar view. She noted that potential acquirers must assess the potential value they can create themselves, while also weighing the cost of lost opportunities.