15 Best European AI Stocks According to Morgan Stanley

8. Merck KGaA (OTC:MKGAF)

Number of Hedge Fund Holders: N/A

Merck KGaA (OTC:MKGAF) is a multinational science and technology company headquartered in Germany, with about 60,000 employees and a presence in 66 countries. The company has an underappreciated electronics business, with the chips division already contributing to almost 12% of the overall sales. As demand for AI chips rises, this figure is likely to grow. The management of the firm hopes to achieve an annual growth rate of 7% to 10% in the medium term. In forecast for the present fiscal year, the firm expects net sales to be in a range of €20.7 billion to €22.1 billion, contributing to organic growth of 2% to 5%.

Merck KGaA (OTC:MKGAF) has invited bullish forecasts from analysts on Wall Street, with Thibault Boutherin of Morgan Stanley noting that AI-related demand would accelerate growth for the electronics business of the firm in the coming months. The analyst has a price target of €200 on the shares, denoting an upside potential of 20%. Boutherin added that the firm could achieve growth targets driven by higher demand for complex material for AI semiconductor manufacturing.