Morgan Stanley Projects Sustained DRAM Deficit Through 2028 Amid Cloud Capex Surge
Cloud memory spending is projected to reach US$418 billion by 2030, representing an 8% CAGR from 2026, with memory accounting for 40% of total cloud capex in 2027, up from 12% in 2023. The DRAM market is forecasted to remain in a continuous supply deficit of -10% to -16% through all of 2026, with structural undersupply persisting through 4Q28.
So What
DRAM supply will remain historically tight through 2028, forcing cloud providers to allocate a significantly larger portion of capex to memory.