Morgan Stanley's report indicates that the AI industry is transitioning from infrastructure build-out to the "inference era," projected to digitize and reshape the global knowledge work market, valued at $20-30 trillion, and the consumer market, worth nearly $30 trillion. This shift is expected to drive an unprecedented sector rotation in capital markets. The report suggests that as hyperscale cloud service providers' data center capital expenditure growth is anticipated to peak and slow down by 2027, investor capital will shift from the semiconductor and hardware layers to the software layer and AI enablers. This will usher in a new round of valuation expansion for tech giants such as Amazon, Google, Microsoft, and Meta.