Investing.com -- Morgan Stanley told clients in a note Friday that it expects a select group of infrastructure-focused software names to outperform as artificial intelligence reshapes demand across the technology sector.

Analyst Sanjit Singh said the firm left its recent TMT conference “feeling better about growth prospects in our infrastructure coverage,” particularly for companies whose platforms are too large and complex for customers to replicate with AI coding agents.

Management teams from leading infrastructure vendors “did an effective job explaining why their businesses were not subject to AI disintermediation risks,” Morgan Stanley wrote, citing “the scale and complexity of their infrastructure platforms” and the “higher total cost of ownership from customers rebuilding” comparable systems.

Their multicloud positioning is also said to provide “the availability and resiliency” required for mission-critical workloads.

The firm believes investors should focus on software companies that “provide the things agents will consume in high quantities,” identifying opportunity in data infrastructure and observability.

According to Morgan Stanley, the strongest beneficiaries include Snowflake, Datadog, Akamai and JFrog.

Snowflake’s presentation was “most impressive,” with management demonstrating an “intense sense of urgency” about industry changes.

“As investors continue to debate the secular implications of a world moving to AI agents, we believe the outperformers in 2026 will be those companies tied to strongest priorities in the current environment,” wrote Singh.

That includes accelerating cloud migrations, new application development, and continued software development activity.

Post-conference, Morgan Stanley highlighted Snowflake, Akamai, Datadog and JFrog as its top ideas, followed by MongoDB.