We recently compiled a list of the Morgan Stanley's 15 Best European AI Stocks.In this article, we are going to take a look at where Fortum Oyj (OTC:FOJCY) stands against Morgan Stanley's other European AI stocks.

In August last year, investment bank Morgan Stanley released an investor note highlighting that even though the chaos around prominent AI firms had somewhat subsided, an AI rumbling in Europe was just about to begin. Analysts at the investment firm compared the AI buzz to historical similarities in the mid-1990s, just before the internet craze. According to Morgan Stanley analysts, European semi stocks were experiencing a tactical correction and would hit new highs in the coming months. The note further detailed that a basket of these equities, handpicked by these experts, and nicknamed AI winners, had returned close to 45% on average since January 2023, the beginning of the AI revolution. These firms had outperformed the 14% jump recorded by the MSCI Europe benchmark, per the research.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

In the months since, European AI stocks have experienced significant volatility, most recently influenced by global developments and investor sentiment. A notable event was the introduction of a low-cost AI model by Chinese startup DeepSeek, which raised concerns about the profitability of existing AI companies that rely on expensive chips and infrastructure. This led to a sharp decline in European tech stocks, with the European tech index dropping 5.8%, marking the worst decline since October 2024. However, the market showed resilience shortly after. European shares reached a record high, driven by gains in retail and utilities stocks as tensions in the tech sector subsided. European stock pickers are exploring established sectors such as utilities, professional data providers, and even copper miners to tap into the next wave of AI advancements. This approach reflects a strategic shift towards industries that can support and benefit from AI infrastructure and applications.

Read more about these developments by accessing 30Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected companies based in Europe that have been benefiting from the AI boom. An important investor note by investment bank Morgan Stanley on European AI stocks formed the basis for this list. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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Fortum Oyj (OTC:FOJCY)

Number of Hedge Fund Holders: N/A

Fortum Oyj (OTC:FOJCY) engages in the generation and sale of electricity and heat in the Nordic countries, Sweden, Germany, the United Kingdom, the Netherlands, and internationally. It is based in Finland. One notable AI initiative of the firm is the development of a tool that classifies requirements into predetermined categories, significantly accelerating the requirements engineering process. This advancement is particularly beneficial for Fortum's nuclear engineering tasks, as it streamlines requirements classification, thereby enhancing operational efficiency. Additionally, Fortum has implemented AI to predict heat demand within its district heating networks. By analyzing weather patterns, human behavior, and energy flows, the company can optimize heat production and supply.

Overall FOJCY ranks 12th on our list of Morgan Stanley's European AI stocks. While we acknowledge the potential of FOJCY as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than FOJCY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

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