Morgan Stanley: Nvidia and Broadcom Safe From AI Power Gap
Morgan Stanley says a forecast 34% U.S. power shortfall won't derail Nvidia or Broadcom's 2027 outlook, citing chip visibility and geographic flexibility.
Morgan Stanley is telling investors that Nvidia and Broadcom are well-insulated from a looming 32-gigawatt power shortfall that threatens to slow America's artificial intelligence data-center buildout, according to a new bank analysis. Despite projecting a 34% net power deficit through 2028, analysts argue that neither chipmaker's 2027 revenue forecasts face meaningful risk from the crunch.
The bank's confidence rests on three pillars: both companies have clear visibility into how and where their chips are being deployed, they have the flexibility to expand into new geographies where power is more available, and they maintain active coordination with the broader power industry. Together, those factors give Nvidia and Broadcom a degree of insulation that many other parts of the AI supply chain simply do not have.
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Not every sector is so fortunate. Morgan Stanley flags that memory manufacturers and suppliers of other data-center components could face delayed deliveries as power constraints squeeze capacity timelines. Those businesses lack the same strategic buffers that the two dominant chip designers have built into their operations, making them more vulnerable to infrastructure bottlenecks.
Despite the headline risk, Wall Street's broader read on the AI industry remains bullish. Prediction markets tracked by Morgan Stanley assign a low probability to a full-blown industry downturn, suggesting that the power gap is viewed more as a speed bump than a structural barrier to the multi-year AI capital expenditure cycle.
The analysis lands as data-center operators race to secure electricity capacity from utilities and independent power producers, with grid constraints increasingly cited by hyperscalers as a top operational concern. For now, Morgan Stanley's verdict is that the two semiconductor giants most central to AI infrastructure are among the safest bets in the space. Continue reading at Yahoo Finance.
