Morgan Stanley: Global M&A Deals Value Rises 40% on AI Demand, Investor Optimism

Global mergers and acquisitions activity rose sharply over the past year, with total deal activity increasing by 40%, driven by a record number of transactions and renewed investor appetite despite macroeconomic uncertainty, according to Morgan Stanley.

In a recent report titled “M&A Trends 2026”, the investment bank said global dealmaking reached 60 large transactions valued at more than $10 billion, even as markets grappled with tariff uncertainty and elevated interest rates during the first half of the period.

The bank said the rebound reflects a combination of structural and cyclical factors, including accelerating adoption of artificial intelligence technologies, rising private capital investment, and improving investor sentiment across global markets.

According to Morgan Stanley, companies are increasingly turning to mergers and acquisitions as a strategic tool to expand capabilities, accelerate digital transformation and gain exposure to fast-growing sectors, particularly those linked to AI infrastructure and enterprise technology.

The report described 2025 as the second-strongest year for global M&A activity in the past decade, underscoring a sustained recovery in dealmaking momentum following a period of subdued activity in earlier years.

Morgan Stanley said the rapid expansion of artificial intelligence applications has become one of the most significant drivers of corporate consolidation, as firms seek to acquire capabilities rather than build them internally. This trend has been reinforced by rising global private equity investment and a renewed willingness among companies to pursue cross-sector expansion.

Improved investor risk appetite has also contributed to higher transaction volumes, particularly in industries undergoing structural transformation, such as technology, healthcare and financial services.

Looking ahead, the bank expects M&A activity to remain strong through 2026, supported by greater clarity in regulatory frameworks and the prospect of lower interest rates, which would reduce financing costs and encourage larger transactions.

Morgan Stanley said companies across multiple sectors are likely to continue using acquisitions as a primary growth strategy, particularly as artificial intelligence infrastructure becomes a central component of global competitiveness.

The report concluded that sustained investment in AI-related technologies will remain a key force shaping global dealmaking trends, reinforcing M&A activity as a critical driver of corporate strategy and market expansion.