Morgan Stanley warns of "chipflation," a phenomenon where memory chip prices rise sharply and stay high as demand persistently exceeds supply, driven by hyperscalers investing more in compute capacity for AI. The research team notes that demand for GPUs, high-bandwidth memory (HBM), and advanced DRAM should continue to outstrip supply because model sizes keep growing and inference workloads are expanding. Morgan Stanley suggests the market needs to adjust to a "durable supply-demand reset," as it takes years to build new chip manufacturing foundries. The firm views the current environment as a transition from torrid hardware deployment toward a focus on utilization rates, token economics, and returns on capital. Against this backdrop, data center build-outs and AI-enhanced device development are unlikely to stop, though the pace may plateau. Micron Technology, as a leading producer of HBM and DRAM, is positioned to navigate this environment.