Morgan Stanley said on Monday that Nvidia and Broadcom look relatively insulated from a worsening US data-centre power crunch, but warned that delays in artificial-intelligence deployments could hit makers of memory, optical and other secondary chip components.
The brokerage estimated last month that US data-centre developers face a 34% net power shortfall through 2028 — equivalent to 32 gigawatts — after accounting for behind-the-meter generation and fuel cells. The AI boom has triggered billions of dollars in data-centre investment, but the vast electricity needs of generative AI are increasingly running up against America's power supply limits.
Why Nvidia and Broadcom are shielded
Morgan Stanley said it does not see the bottlenecks putting Nvidia's or Broadcom's 2027 forecasts at risk. The brokerage cited both companies' visibility into chip placement, their geographic expansion, and close coordination between data centres, semiconductor suppliers and the power supply chain as reasons the two giants can navigate the squeeze.
Who is exposed
The warning instead falls on secondary component makers. If chip capacity cannot be deployed because of power constraints, customers could push out deliveries or cancel orders — and makers of memory, optical, power-management and analog components would be most exposed to the resulting inventory disruption, according to the note.
A wider industry worry
Goldman Sachs has also flagged mounting constraints on the US data-centre buildout. Goldman expects limited near-term impact from political pushback against data centres, while Morgan Stanley pointed to labour, power and political challenges as the three headwinds facing the sector.
The assessment is an analyst research note, not a company announcement, and its underlying figures are estimates attributed to the brokerage.
Sources:
- Reuters: Nvidia, Broadcom shielded as AI power crunch hits chip supply chain, says Morgan Stanley
- NDTV Profit: Nvidia, Broadcom Shielded From US Power Crunch; Memory Makers Exposed: Morgan Stanley
The brokerage estimated last month that US data-centre developers face a 34% net power shortfall through 2028 — equivalent to 32 gigawatts — after accounting for behind-the-meter generation and fuel cells. The AI boom has triggered billions of dollars in data-centre investment, but the vast electricity needs of generative AI are increasingly running up against America's power supply limits.
Why Nvidia and Broadcom are shielded
Morgan Stanley said it does not see the bottlenecks putting Nvidia's or Broadcom's 2027 forecasts at risk. The brokerage cited both companies' visibility into chip placement, their geographic expansion, and close coordination between data centres, semiconductor suppliers and the power supply chain as reasons the two giants can navigate the squeeze.
Who is exposed
The warning instead falls on secondary component makers. If chip capacity cannot be deployed because of power constraints, customers could push out deliveries or cancel orders — and makers of memory, optical, power-management and analog components would be most exposed to the resulting inventory disruption, according to the note.
A wider industry worry
Goldman Sachs has also flagged mounting constraints on the US data-centre buildout. Goldman expects limited near-term impact from political pushback against data centres, while Morgan Stanley pointed to labour, power and political challenges as the three headwinds facing the sector.
The assessment is an analyst research note, not a company announcement, and its underlying figures are estimates attributed to the brokerage.
Sources:
- Reuters: Nvidia, Broadcom shielded as AI power crunch hits chip supply chain, says Morgan Stanley
- NDTV Profit: Nvidia, Broadcom Shielded From US Power Crunch; Memory Makers Exposed: Morgan Stanley
