AI 'chipflation' spreading from data centers to wider economy, Morgan Stanley warns

> June 3 (Reuters) - 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 center chips over those used in everyday devices.

> "What began ​as an AI infrastructure bottleneck is now spreading into hardware margins, device affordability, cloud ​costs, inflation and policy," Morgan Stanley said in a 66-page note, adding the ⁠crunch has "become a macroeconomic concern."

> While the direct impact on consumer inflation may be limited, the pressure is ​showing up across producer prices, corporate margins, cloud costs, capital spending and delays in rolling out new technology, ‌the brokerage ⁠wrote.

https://www.reuters.com/business/retail-consumer/ai-chipflation-spreading-data-centers-wider-economy-morgan-stanley-warns-2026-06-03/