Morgan Stanley's Global Head of Technology M&A, Wally Cheng, has highlighted a surge in AI-related mergers and acquisitions spanning various sectors and company sizes. Speaking on May 21, Cheng noted that firms are actively pursuing deals to bridge technological gaps in areas such as chips, power, networking, and infrastructure. He emphasized that both private and public companies are involved in this expansive transaction activity. Cheng pointed out the significant attention on semiconductors, which are crucial for AI computing, but also stressed the importance of the surrounding infrastructure, including networking, storage, and power. Despite the excitement, Cheng acknowledged the challenges in valuing the AI industry, which involves balancing optimistic scenarios with real execution risks. Tammy Kiely from Evercore echoed these sentiments, highlighting the need for potential acquirers to evaluate the value creation potential against the cost of missed opportunities.