Dan Simkowitz on CNBC From the Milken Institute Global Conference

Summary

Morgan Stanley co-president Dan Simkowitz discusses the financing of AI transformation, the recovering IPO market, and the impact of geopolitics on markets. He highlights the revenue ramp in AI, the broadening investor base for IPOs, and the complexity driving market volatility.

• AI transformation is being financed through diverse capital market instruments in the US.
• Revenue ramp in AI is visible in public companies like Google and Nvidia and in private firms.
• Adopters of AI are outperforming non-adopters in terms of margins and stock performance.
• The IPO market is healing after a slow period, with large deals and broadening investor demand.
• M&A activity is strong but not explosive, constrained by geopolitical uncertainty.
• Geopolitical complexity is driving market volatility and dispersion.
• Private capital markets are growing and offering more liquidity to a wider investor base.
• Confidence in high-quality fundamental investing across the lifecycle remains.