15 Best European AI Stocks According to Morgan Stanley

6. Orange S.A. (NYSE:ORAN)

Number of Hedge Fund Holders: 6 

Orange S.A. (NYSE:ORAN) provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators. In addition to providing the high speed connections needed for AI services to work wirelessly, the company has also partnered with tech giant Google to deploy AI into the business, leveraging the power of generative AI for smarter networks, operational efficiency and improved customer service. This AI pivot has allowed the company to integrate AI into data centers that protect sensitive workloads on must stay on-premises, while also enabling the filtration of extremely high-volume data.

Orange S.A. (NYSE:ORAN) is ahead of the curve when it comes to modernizing telecom infrastructure, crucial for enabling a conducive growth environment for AI firms. The CapEx/Sales ratio of the firm is declining at a time when many major telecom firms on the continent still have high ratios of close to 20%. The African and Middle East operations of the firm also continue to be underestimated in terms of earnings potential.