Morgan Stanley: A Solid Bet, But Does It Top Chris Rokos' 2025 List?

Investors seeking clarity on whether Morgan Stanley (NYSE:MS) is the “best stock to buy” in 2025 according to billionaire Chris Rokos must navigate a nuanced landscape of performance, strategy, and shifting market dynamics. While Rokos’ inclusion of MS among his top 10 picks underscores its stability and growth potential, the analysis reveals a critical caveat: the fund’s true focus lies elsewhere.

The Case for Morgan Stanley: Strength in Volatility

Morgan Stanley’s Q4 2024 results paint a compelling picture. Revenue surged 17% to a record $17.74 billion, driven by a 45% leap in equity trading and 6% growth in investment banking. The firm’s stake in MS—valued at $102.2 million—reflects Rokos’ confidence in its ability to thrive amid macroeconomic turbulence.

Rokos’ fund, which capitalized on geopolitical volatility in 2022 (delivering a 51% return while the S&P 500 fell 18%), has long prioritized institutions capable of weathering uncertainty. MS’s robust earnings growth (26% to $4.32 billion) and its dominance in Asia and hedge fund markets align with this strategy. Yet, Rokos’ list positions MS as the tenth-ranked stock, hinting at deeper priorities.

The AI Conundrum: Why MS Isn’t the “Best”

The elephant in the room is artificial intelligence. While MS is a viable holding, Rokos’ analysts are bullish on an unnamed AI stock that has outperformed giants like NVIDIA (NVDA) and Broadcom (AVGO). Since early 2025, this AI firm has gained significantly, even as NVDA and AVGO lost ~25%.

The AI stock’s valuation—under 5x its earnings—contrasts starkly with MS’s P/E ratio of ~12x. Rokos’ team argues that this AI company’s cutting-edge technology and potential for market dominance could yield a 10,000% return over a decade. Such claims, while bold, are grounded in the transformative power of AI, which Nightview Capital likens to the early internet boom.

Risks and Market Shifts: The Case Against Traditional Finance

Traditional financial institutions face headwinds. Inflation and trade policies are straining 60/40 portfolios, pushing investors toward safer havens like gold. MS’s 6% rise in investment banking revenue, while positive, pales compared to AI’s exponential growth trajectory.

UBS analyst Erika Najarian’s Neutral rating on MS ($120 price target) further signals tempered optimism. The firm’s reliance on cyclical markets—such as debt capital activity—leaves it vulnerable to economic slowdowns, unlike AI’s secular growth drivers.

Conclusion: MS Is Steady, but AI Is the Game-Changer

Morgan Stanley is undeniably a top-tier financial institution with strong fundamentals and a proven track record in volatile markets. Rokos’ $102.2 million stake and the firm’s 26% earnings jump highlight its resilience. However, the data is clear: Rokos prioritizes AI stocks for outsized returns.

The unnamed AI stock’s valuation (5x earnings) versus MS’s 12x P/E, coupled with its 25%+ outperformance over NVDA and AVGO, underscores its potential. Over a decade, a 10,000% return would transform even a modest investment into a windfall—a prospect far beyond MS’s 6-7% average annual growth.

For investors, the choice is between safety and scalability. MS is a prudent bet for capital preservation and steady gains, but Rokos’ emphasis on AI reflects a conviction that transformative technologies—not traditional finance—will dominate the next decade. In 2025, the “best stock” isn’t Morgan Stanley. It’s the AI pioneer racing toward the future.