When Will the Massive AI Investments Pay Off? Morgan Stanley Has the Answer: 2028!

　　Artificial Intelligence (AI) is the story driving market development in 2025. But as companies pour massive funds into enormous infrastructure construction, some investors are beginning to worry: Is all this spending worth it?

　　Morgan Stanley provided a reassuring answer this week: This spending spree will soon pay for itself. The bank stated that by 2028, the huge capital expenditures are likely to have a positive impact on company revenues.

　　Recently, OpenAI alone has announced numerous deals with tech giants, establishing important partnerships with Oracle, Nvidia, and Advanced Micro Devices. This AI startup is ramping up its investments in chips and data centers to a trillion-dollar magnitude to support its rapidly growing infrastructure.

　　In a recent report to investors, Morgan Stanley's Global Research Director, Katy Huberty, shared a chart on the diffusion of AI technology spending. It illustrates a tightly connected group of tech companies, with vast sums of money either flowing through OpenAI or originating from it.

　　"Our bottom-up analysis suggests the answer is yes, as our technology team forecasts AI software revenue will reach $1.1 trillion by 2028, based on typical software profit margins."

　　This indicates that the capital currently being invested has considerable return potential. The report concluded that, despite the massive scale of AI spending, prudent execution and revenue growth remain key to sustaining momentum.

　　Morgan Stanley's forecast suggests that the current wave of AI spending is part of a longer-term profit cycle, rather than a speculative bubble that some have begun to fear. The bank also expects global related expenditures to approach $3 trillion by 2028.

　　If the aforementioned revenue target proves correct, Huberty's team believes the AI boom will continue to drive the growth of companies investing heavily in the field today.

　　Previously, analysts from firms like Morningstar speculated that the massive AI capital expenditures by tech companies such as Amazon, Microsoft, and Alphabet could negatively impact their stock prices over time.