We just published a list of the 10 Stocks to Watch from Morgan Stanley's Ultra-Selective Tailwinds Strategy, and Union Pacific Corporation (NYSE:UNP) ranked 6th on this list.
Artificial intelligence is rapidly reshaping the current corporate landscape. However, the next phase of its economic impact may extend well beyond the companies developing AI models, semiconductors, and data centers.
In its September 2026 report, AI Beneficiaries: Investing in Second-Order Effects – Update: 100x AI Cultures, Morgan Stanley argued that investors should keep a close eye on businesses that can successfully integrate the technology into their workflows more effectively than peers and use it to significantly enhance their productivity. In the long run, these beneficiaries of the second-order effect of the AI boom could drive even greater returns than companies that simply supply the infrastructure behind it.
Don't want to miss out on the AI craze? Here are the 10 Best Performing AI Stocks of 2026.
The report draws on historical examples to justify its argument. During the automobile revolution, car manufacturers appeared to be the obvious initial beneficiaries. However, their long-term returns wer...