Morgan Stanley says NVIDIA and Broadcom set for solid 2027
NVIDIA and Broadcom are staying strong, even as US data centers deal with a major power shortage.
Morgan Stanley says that despite a predicted 34% shortfall in electricity through 2028, thanks to AI's huge energy demands, both companies look set for a solid 2027.
Their secret? Smart planning and close teamwork with suppliers and data centers to keep things running smoothly.
Component makers face cancelations, inventory strain
While NVIDIA and Broadcom are in the clear, chip component manufacturers aren't so lucky.
Morgan Stanley warns that delays from the power crunch could mean canceled or pushed out deliveries or canceled orders for companies making memory, optics, power management, and analog components.
With AI driving up demand but not enough power to go around, these suppliers could face tough inventory problems trying to keep up.