Morgan Stanley report: AI material shortages to persist through 2028

A Morgan Stanley report from September 13, 2026, highlights that AI infrastructure demand is reshaping supply chains for PCB and MLCC materials. High-end glass cloth, HVLP4+ copper foil, and optical fibers are identified as the most critical bottlenecks, with shortages expected to last until 2028. The bank projects the high-end glass cloth supply gap at 40% for 2026, while demand for data center optical fiber is expected to grow at a CAGR of over 20% through 2030. Additionally, the report notes that synthetic diamonds and other advanced thermal management materials represent long-term opportunities as GPU power requirements increase.