Morgan Stanley analyst Joseph Moore has warned that the ongoing memory shortage in the data center sector is worsening, with no signs of easing supply pressures. According to Citrini analyst Jukan, memory prices have surged by over 25% in the third quarter of 2026 compared to the previous quarter, surpassing earlier forecasts by Morgan Stanley and other institutions. The shortage is driven by the artificial intelligence industry's increasing demand for DRAM capacity, which is limiting memory resources for other sectors. This has already impacted the production of consumer electronics like PCs and smartphones. The tight supply is expected to persist into 2027 and 2028, with current market resources unable to meet the growing demand.