Morgan Stanley’s Shalett Remains ‘Extremely’ Bullish on AI Capex Despite Market Turmoil

Shalett's argument reframes the political and leadership risks as noise around a spending cycle she expects to persist, which matters most for the infrastructure layer — power, grid and industrial suppliers — rather than for AI names broadly. Her preference for hyperscalers and select software over the wider tech complex implies a dispersion story: the AI trade is becoming a question of which links in the chain capture the capex, not whether it arrives. The open question is whether voter pressure for AI safety rules and cost-sharing on data centers starts to bite into that spending, or stays a regulatory overhang the market discounts.