AI adoption surges across industries, reshaping competitive advantages: Morgan Stanley

Adobe, Amazon, and Johnson Controls stand out in a surge of AI adoption, according to a Morgan Stanley research note. The report highlights a rapid ramp-up in both digital and physical applications of AI across major industries, accelerating operational efficiencies and reshaping competitive advantages. The firms are expected to benefit from this trend, with Adobe's digital experience and Amazon's e-commerce prowess positioning them well for AI-driven growth.

Artificial intelligence (AI) is rapidly transitioning from experimentation to large-scale deployment across major industries, according to a Morgan Stanley research note released on July 2, 2025. The report, part of the firm’s “Thematic Alpha” series, highlights a surge in both digital and physical applications of AI, accelerating operational efficiencies and reshaping competitive advantages.

Among the standout firms in this AI adoption surge are Adobe, Amazon, and Johnson Controls. Adobe's digital experience and Amazon's e-commerce prowess position them well for AI-driven growth. Adobe is leveraging AI to enhance its creative and marketing solutions, while Amazon is integrating AI into its logistics and customer service operations to improve efficiency and customer satisfaction.

Johnson Controls, a key player in the building materials and automation sectors, is also experiencing a significant boost from AI adoption. The firm is using AI to optimize its operations and improve product offerings. Recent news highlights, such as partnerships with major construction companies and strong earnings reports, suggest that Johnson Controls is well-positioned to benefit from the broader industry upturn driven by AI.

Despite the positive outlook, Johnson Controls faces mixed analyst sentiment and moderate fundamental support. While the firm shows strong technical signals, with a technical score of 7.71 and a mix of bullish and bearish indicators, the lack of consensus among analysts contrasts with the recent price decline. The mixed fundamental picture suggests moderate operational strength but also some financial leverage concerns.

Investors should watch Johnson Controls' upcoming earnings release and monitor how the stock responds to recent technical signals, such as the WR Oversold signal and MACD Death Cross on July 29. Given the current technical strength and recent volatility, investors might consider waiting for a pull-back before entering a position.

References:
[1] https://seekingalpha.com/news/4476927-adobe-amazon-and-johnson-controls-stand-out-amid-surge-in-ai-adoption-morgan-stanley
[2] https://www.ainvest.com/news/stock-analysis-johnson-controls-outlook-technical-strength-mixed-analyst-sentiment-2508/