PremiumBy Shawn Kim, Morgan Stanley equity analystIn the Sunday Start two weeks ago, we described an inelastic economy – AI infrastructure demand proving remarkably insensitive to rising costs. Sharp price increases ranging from copper to gas turbines to memory have done little to slow the build-out. This week we follow that thread into the memory market, where the price signal is loudest and traveling furthest.
The Shocking Impact Of Memory "Chipflation" On Soaring Producer Prices: A Morgan Stanley Deep Dive
The question is not whether memory prices have risen enough to matter. They have. It is whether the cost is travelling through channels diffuse and slow enough that, by the time it becomes fully visible, the underlying price shock will be two years old.
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