New Delhi, June 10 -- Memory storage is set to remain a structural bottleneck through 2027 as AI demand continues to absorb Dynamic Random-Access Memory (DRAM), High Bandwidth Memory (HBM) and enterprise Solid-State Drive (SSD) supply. Morgan Stanley expects allocation-based supply chains, not spot pricing, to dominate, leaving non-AI buyers with tighter pools, higher costs and weaker access. Even with total DRAM wafer capacity expanding 30% by 2027, supply available for smartphones, PCs, autos and industrial markets is projected to fall 12-15% short as suppliers prioritize high-margin HBM and server memory.

Policy responses like US or China subsidies, tax credits or permitting reform could ease pressure eventually, but supply responses ...