The AI ​​bull market will continue! Morgan Stanley: Huang Renxun’s resignation and political changes make it difficult to shake the momentum of capital expenditures

"Bloomberg" reported that Morgan Stanley said that the leadership turmoil caused by Jen-Hsun Huang's resignation as CEO of Nvidia and the Democratic Party's victory in the U.S. midterm elections, which advocated slowing down the construction of data centers, have raised market doubts about the sustainability of the artificial intelligence (AI) boom. However, these bad news will not destroy the main driving force of this bull market (bull market): capital expenditures on artificial intelligence (AI) infrastructure.

Lisa Shalett, chief financial officer of Morgan Stanley Wealth Management, said that the election results should not be seen as a denial of AI investment or data center construction. On the contrary, voters are demanding strict supervision of AI security and a more equitable distribution of the costs and benefits of data center development. If investors pay too much attention to political dynamics and the fluctuations of technology stocks, they will ignore the longer-term market narrative.

Sharette said investors who focus too much on political dynamics and the volatility of technology stocks will miss the longer-term market narrative. She pointed out: "Looking at the big picture, what long-term investors need to focus on is: the fundamentals of the bull market driven by AI capital expenditures and AI transformation remain solid. In my opinion, the overall outlook is very optimistic."

AI concept stocks, which have been driving stock market gains this year, have seen volatility in recent trading. The Philadelphia Semiconductor Index fell 3.4% on the 13th, but it still rose 8.1% last week, despite the incident that severely hit Huida. After Huang Renxun resigned due to an extramarital affair scandal with a suspected Chinese female spy, the company's stock price fell 13% last week, the largest single-week decline since US President Trump announced the implementation of "reciprocal tariffs" in April 2025, and the market value evaporated by US$537 billion (NT$18.8 trillion).

Sharette said that equipment and other infrastructure suppliers that support AI infrastructure currently have a large backlog of orders, which are scheduled all the way to 2027, and may even extend to the first half of 2028. Any political action that significantly delays data center construction may not have a real impact until 2028 and 2029.

Sharette pointed out that even so, political pressures that would slow down industrial expansion and compress long-term profit margins may reduce the risk of ups and downs in the AI ​​industry. A more gradual pace of AI investment will help alleviate inflationary pressure, reduce pressure on the credit market, and limit the scale of new stock issuance that investors need to digest. These developments will not only not destroy the bull market, but will help extend the life of the bull market.