Morgan Stanley: 5 Tech-Software Stocks Could Double This Year

Morgan Stanley highlights buying opportunities in software stocks as AI-driven selloffs continue, with the iShares Expanded Tech-software Sector ETF (IGV) down over 20% since January 3, 2026. Analysts attribute the decline to fears of headcount reductions and seat-based revenue compression from AI-native competition, exemplified by a sell-off following Anthropic's AI legal tools. The firm identifies five companies with significant upside: Intuit (INTU), Salesforce (CRM), ServiceTitan (TTAN), CCC Intelligent Solutions (CCC), and Vertex (VERX). At fair value, Intuit and Salesforce each have about 101% and 109% potential gains from Tuesday, Feb 9, 2026's close, respectively. Key to the outlook is demonstrating AI's material financial impact; weakness in cloud growth has pressured Microsoft (MSFT) and Amazon (AMZN), while Meta Platforms (META) saw gains from AI-driven ad performance. Morgan Stanley and Jefferies caution that non-linear AI advancements will keep the market volatile and earnings disappointments could trigger further swings.