AI ‘chipflation’ spreading from data centres to wider economy, Morgan Stanley warns - BNN Bloomberg
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Article Excerpt
Soaring memory chip prices driven by massive AI demand risk stoking “chipflation,” Morgan Stanley analysts cautioned, as makers of devices from smartphones to PCs are forced to choose between raising prices and settling for thinner margins.
The brokerage said on Tuesday that memory chip prices have spiked six-fold in the past year, as manufacturers have struggled to keep up with Big Tech’s AI infrastructure spending spree and prioritized higher-margin data centre chips over those used in everyday devices.
“What began as an AI infrastructure bottleneck is now spreading into hardware margins, …
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