MORGAN STANLEY: AI M&A BOOM SPANS ALL COMPANY SIZES

The dealmaking landscape for AI is diversifying beyond headline-grabbing mega-acquisitions, according to Morgan Stanley's head of global technology M&A. Acquisitions will span the full spectrum of company sizes as enterprises scramble to build competitive advantages. The consolidation push targets specific technical capabilities. Chips remain a primary acquisition target as companies seek semiconductor expertise. Power infrastructure and networking technologies are equally critical as AI workloads demand significant computational resources. Industries beyond traditional tech are entering the M&A fray. Companies across sectors recognize AI capability gaps and are turning to acquisitions as faster routes to deployment than internal development. The dealmaking activity reflects the competitive urgency surrounding AI adoption. Rather than a concentrated wave of blockbuster deals, Morgan Stanley sees fragmented M&A activity tailored to individual company needs and infrastructure priorities.