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AI Capex Fueling Strongest EM Earnings in Two Decades, MS Says

Emerging-market stocks are heading for their strongest stretch of earnings growth since the 2002-04 super-cycle, powered by a surge in artificial-intelligence investment that is reshaping the asset class, according to Morgan Stanley.

Feb 27, 2026 &02072727202628; 06:07 UTC feeds.bloomberg.com Trending 3/5

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Positive for markets

Sentiment score: +85/100

High impact Long-term (months)

WHAT THIS MEANS

Morgan Stanley reports that emerging-market stocks are experiencing their strongest earnings growth since the 2002-04 super-cycle, driven by a surge in artificial intelligence investment. This AI-driven capital expenditure is reshaping the asset class, indicating robust long-term potential for EM equities.

AI CONFIDENCE

0% Low

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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EEM

EEMIndex

Expected to rise

AI investment fueling the strongest EM earnings growth in two decades, as reported by Morgan Stanley.

PRICE HISTORY

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⚡ SUGGESTED ACTION

Increase allocation to emerging-market indices or AI-focused ETFs to leverage the anticipated earnings growth and long-term trend in EM stocks.

KEY SIGNALS

AI capex surgestrong EM earnings growth

SECTORS INVOLVED

technologyemerging markets

Analysis generated on Feb 27, 2026 at 07:05 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Bloomberg Markets. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

AI Capex Fueling Strongest EM Earnings in Two Decades, MS Says

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