Jim Cramer Notes Morgan Stanley Will "Reap Outsized Benefits"

Morgan Stanley (NYSE:MS) is one of the stocks that Jim Cramer shared insights on. Cramer mentioned the stock under his game plan, as he said:

“Wednesday, we hear from the two big investment banks… Goldman Sachs and Morgan Stanley. I think both will have terrific numbers and even better stories now that the mergers and acquisition business has exploded in the IPO markets, warm, bordering on hot. What a change from even two months ago. And these two companies are going to reap outsized benefits.”

Morgan Stanley (NYSE:MS) provides financial services, including investment banking, wealth and asset management, trading, lending, and advisory solutions for individuals, institutions, and governments. Nightview Capital stated the following regarding Morgan Stanley (NYSE:MS) in its Q4 2024 investor letter:

“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.

Morgan Stanley (NYSE:MS): Core Opportunity: Morgan Stanley’s diversified business model supports robust growth across investment banking, wealth management, and investment management.

Key Highlights: Investment Banking Momentum: Revenues rose 55% YoY in Q3 to $1.5 billion, driven by market recovery and large public offerings.

Wealth Management Leadership: Record revenues of $7.2 billion, with total fee-based assets reaching $2.3 trillion.

AI Integration: Cutting-edge partnerships enhance advisor productivity and deepen client relationships.

Investment Case: Morgan Stanley offers a compelling blend of growth and resilience, with strong revenue diversification and a dominant wealth management franchise. Its forward P/E of ~14x suggests attractive valuation upside.”

While we acknowledge the potential of MS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.