AI TRENDS | Morgan Stanley Analyst Says Data Center Memory Shortage Is Worsening

Citrini analyst Jukan cited Morgan Stanley analyst Joseph Moore as saying that memory shortages in the data center sector continue to worsen, with no sign of easing in market supply pressure. According to Odaily, Moore said memory supply remains tighter than expected, and prices for the same type of memory product rose at least 25% in the third quarter compared with the level expected for the second quarter of 2026. Moore said the supply crunch may continue to intensify in 2027 and 2028, as available memory resources are insufficient to meet rapid growth in the artificial intelligence industry. He said AI is consuming significant DRAM capacity, reducing memory available to other industries, and that production of consumer electronics such as PCs and smartphones has already been affected. Moore also said memory is becoming a key bottleneck for AI development, alongside data center space and power supply. He added that some cloud customers are paying higher-than-expected prices to receive memory products six weeks earlier, and that pressure on the HBM and DRAM supply chains may persist as AI server construction continues to expand.