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Gelonghui April 13 ─ Morgan Stanley has released a report stating that the market may be severely underestimating the actual force and depth of the AI revolution. Top large language models (LLMs) are experiencing a nonlinear leap in capabilities, and the explosive growth of AI is encountering systemic supply bottlenecks. The global gap in computing power and electricity demand is expected to continue expanding over the long term. The report cites data showing that in the first quarter of this year, global weekly token usage surged 250% to 22.7 trillion, and some LLM providers have already set limits on user usage. Morgan Stanley forecasts that future growth in computing power demand will be three times the compound annual supply growth projected by NVIDIA, with computing power shortages persisting and becoming even more intense. With the launch of next-generation chips, AI computing costs will drop significantly, further fuelling demand, meaning chip manufacturers, optical communications, and data center equipment suppliers will see long-term structural benefits. Additionally, energy is becoming a “time bomb” restricting AI development. The firm estimates that between 2025 and 2028, U.S. data centers will face a power shortage of around 55 GW. Even with alternative solutions such as natural gas, fuel cells, or nuclear power, the net deficit may still reach as high as 18% to 30% of total deployed capacity.

Michael Saylor revealed that Strategy is preparing for a new round of Bitcoin purchases and released a suggestive message: “think bigger.” Strategy currently holds 766,970 Bitcoins, with an average purchase price of 75,644 USD, and has an unrealized book loss of about 1.45 billion USD. The company finances through STRC preferred stock products, which require an annualized return rate of about 2.05% to cover dividends, but may face risks if the price of Bitcoin remains stagnant or declines over the long term.

These analysts stated that the industry’s expected dividend yield for 2026 is 5.7%, indicating a yield spread of approximately 350 basis points compared to the 10-year EMEA bond yield. They anticipate that in the upcoming earnings season, the operating performance of EMEA real estate investment trusts will generally trend positively. They recommend closely monitoring any potential drag from Middle East conflicts, particularly the impact on trusts focused on the hospitality sector, as well as guidance regarding rental rates and debt costs. Lock and Li remain optimistic about CapitaLand Integrated Commercial Trust in EMEA due to its visible growth in distribution per unit, and also favor CapitaLand Ascendas REIT given the resilience of its portfolio.