Investors looking for new ways to play gain exposure to artificial intelligence should look at The Williams Companies , according to Morgan Stanley. The investment bank named the energy infrastructure stock a top pick. It has an overweight rating on the name and a $103 price target, which signals upside of 45% from Tuesday’s close. “WMB continues to be one of most compelling risk-adjusted ways to participate in the buildout of AI Infrastructure, in our view, with this summer’s pullback offering an attractive entry point ahead of new project announcements,” analyst Robert Kad said Tuesday in a note to clients. Shares of Williams have fallen nearly 7% over the past three months as investors have grown more concerned about the sustainability of hyperscalers’ outsized investment in infrastructure such as data centers, which has served as a key catalyst for the AI trade. WMB 3M mountain Shares have fallen about 7% over the past three months. The resulting pullback in AI-linked stocks, however, offers an attractive entry point for investors looking to add Williams to their portfolios, according to Morgan Stanley. Kad noted that Williams is still poised to generate roughly 20% return on equity from its data center solutions. In addition, the company is likely to announce a new power project in the near future, which could drive additional value to its shares. “We continue to believe the degree of inflection in WMB’s growth investment remains underappreciated by the market,” Kad wrote. Morgan Stanley’s call falls in line with consensus on the Street. Of the 23 analysts covering The Williams Companies, 19 have a buy or strong buy rating on the stock, LSEG data shows.
