AI RACE MAY DEPEND MORE ON ACCESS TO POWER , INFRASTRUCTURE THAN CHIP SUPPLY : MORGAN STANLEY

What happened: Morgan Stanley said the AI race may depend more on access to power and infrastructure than on chip supply, warning that US data-centre developers could face a power shortfall. Key numbers: 32 GW US data-centre power shortfall through 2028, about 34 per cent of projected requirements; Why it matters: Morgan Stanley said power access increasingly favors large, well-funded companies and could squeeze out other players. It expects Nvidia and Broadcom to meet 2027 forecasts but sees greater risks for memory chip, optical equipment and component suppliers if deployment slows.

Morgan Stanley said the AI race may depend more on access to power and infrastructure than on chip supply, warning that US data-centre developers could face a power shortfall.

Morgan Stanley said power access increasingly favors large, well-funded companies and could squeeze out other players. It expects Nvidia and Broadcom to meet 2027 forecasts but sees greater risks for memory chip, optical equipment and component suppliers if deployment slows.