Morgan Stanley Warns Memory Crisis Will Persist, Storage Prices May Rise Over 25%
Morgan Stanley analyst Joseph Moore pointed out that the memory shortage in data centers continues to worsen, with no relief in market supply pressures. The tightness in memory supply is greater than expected. Currently, the prices of memory products of the same specifications have risen by at least 25% compared to the expected levels for the second quarter of 2026, exceeding the forecasts of Morgan Stanley and third-party institutions. The tight supply of memory may continue to escalate in 2027 and 2028, as the current available memory resources in the market cannot meet the rapidly growing demand from the artificial intelligence industry, and this situation is unlikely to change in the short term. AI is consuming a large amount of DRAM capacity, leading to a reduction in the memory resources available to other industries, affecting the production of consumer electronics such as PCs and smartphones. The memory shortage has become one of the key bottlenecks limiting AI development, equally important as data center space and power supply. Additionally, some cloud computing customers are paying higher-than-expected prices to obtain memory products with a six-week advance delivery. The market anticipates that as AI server construction continues to expand, the supply chain pressures for high bandwidth memory (HBM) and DRAM will further persist.
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