Morgan Stanley's latest report suggests that Meta's initiative to develop its own GPU services is a strategic response to the ongoing global GPU shortage. The report, based on May data from the Semiconductor Industry Association (SIA), indicates that Meta's move is not merely competitive positioning against cloud giants like AWS and Azure, but a necessity due to the scarcity of GPU resources. The report further notes that the current market conditions reflect an extreme scarcity, as even the most capable enterprises are struggling to secure sufficient GPU capacity. Additionally, the shortage of DRAM is projected to persist until early 2028, exacerbating the challenges faced by tech companies reliant on these critical components.