Morgan Stanley raises US data center power gap to 38GW, still most bullish on Nvidia and Broadcom

BlockBeats news, October 26 — Nvidia opened higher and climbed on Monday, with its stock price rising more than 3% at one point and its market capitalization reaching $5.23 trillion. Morgan Stanley's latest research report raised its forecast for the U.S. data center net power gap from 2026 to 2028 from 33GW to 38GW, and noted that under constrained power supply, ASIC chips may lose share relative to GPUs.

On semiconductor investments, Morgan Stanley remains most bullish on Nvidia and Broadcom (shares up more than 3.2%), citing relatively conservative guidance, chip shipment visibility, expansion in markets outside the U.S., and Nvidia's higher token output efficiency per watt.

Morgan Stanley noted that the market is trying to match data center capital expenditure expectations of $1.5 trillion in 2027 and $1.6 trillion in 2028 with actual power supply capacity. If data center construction is paused or slows, downstream components such as memory and optical modules, as well as areas including power management and analog chips, may be hit harder by overordering caused by earlier shortages.