Morgan Stanley updated its portfolio of top stock picks that trounced the market in the last year


Morgan Stanley has added some of Wall Street’s biggest tech names to its list for top stocks to hold in the coming year. According to Michelle Weaver, the firm’s Vintage Values list combines fundamental stock selection with quantitative analysis. The list has returned 19.49% in the last year, outperforming the S & P by 9.41 percentage point. Weaver stated that the list is biased towards high-quality stocks but it still screens out as cheaper than the market in almost all multiple-based metrics. This includes key cash-flow based valuation measures. Morgan Stanley has shifted its focus to some of the biggest tech winners this year including Nvidia, Microsoft, and others. Morgan Stanley maintains an overweight on Microsoft with a $415 target price, which represents a 26% increase from the close of Thursday. Weaver stated that the company was well-positioned to capitalize on artificial intelligence and cloud service adoption. Microsoft’s shares are up more than 39% in the past year. Microsoft YTD Mountain Microsoft Year to Date Chipmaker Nvidia was also on the list. Stock is best performing in S & P 500 for this year. It has risen more than 217%. The stock has risen in value due to the excitement around AI, and expectations of high demand for Nvidia semiconductors. Morgan Stanley has rated Nvidia overweight, with a price target of $630 per share. This is a 36% increase from Thursday’s closing. Analysts said that the data center segment will continue to grow, which is a positive for the company. NVDA YTD Nvidia 2023 The list was updated by the bank to include Alphabet, the parent company of Google. Morgan Stanley has set a price target of $155 for each share and rates the stock overweight. This outlook indicates a gain of about 15%. Weaver stated that Alphabet would continue to integrate AI platform functions in its Google search segment and YouTube segment, while “other