Morgan Stanley Forecasts Memory Chip Supply Shortage Through 2028, Q3 Prices to Rise 25% or More

According to Morgan Stanley analyst Joseph Moore on July 20, memory chip supply shortages are forecast to persist through 2028, with third-quarter prices expected to rise at least 25% quarter-over-quarter. The shortage is driven primarily by strong AI data center demand, which Moore described as unusual compared to historical cycles.

Moore views recent price weakness as a buying opportunity, noting that supply tightness shows no signs of easing based on conversations with major data center operators. He recommended memory chip stocks as preferred entry points for investors alongside Nvidia and Broadcom.