15 Best European AI Stocks According to Morgan Stanley

5. STMicroelectronics N.V. (NYSE:STM)

Number of Hedge Fund Holders: 16 

STMicroelectronics N.V. (NYSE:STM) is a Swiss firm that designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company has long-term exposure to structural growth areas such as the energy transition, data centers, and microcontrollers. The company recently launched a smart sensor with edge AI processing for motion tracking in industrial and robotics applications. In June, the firm had launched the STAI suite, bringing together tools, software and knowledge to simplify and accelerate edge AI application development.

Morgan Stanley analyst Lee Simpson has an Equal Weight rating on STMicroelectronics N.V. (NYSE:STM) stock with a price target of €35. Simpson, although optimistic on the long term outlook, is skeptical about near-term catalysts for the stock. In a recent note, the analyst highlighted that the pressure on the shares, due to the long-running nature of this cyclical trough, would continue until 2025.