Morgan Stanley’s 15 Best European AI Stocks

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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. The chips division of the company contributes nearly 12% to the overall sales. In August 2024, Thibault Boutherin of Morgan Stanley noted that AI-related demand would accelerate growth for the electronics business of the firm in the coming months. The management of the firm hopes to achieve an annual growth rate of 7% to 10% in the medium term. The analyst had 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 materials for AI semiconductor manufacturing. Six months after this thesis was published, the stock has declined by more than 11%.

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