AI workloads are driving memory demand and reshaping workflows in the software and services industry

Overview

This report is Morgan Stanley's weekly European software and services research, themed "AI's Insatiable Appetite for Memory." Using four cases—Micron's results, Informa's valuation, SAP management commentary, and Springer Nature's technology activities—the report discusses how AI is affecting memory and data storage, enterprise software development organizations, B2B offline events, and academic publishing workflows. The overall industry view is In-Line.

Core views

The core view is that AI is moving from simple prompts and chat responses toward more persistent, workflow-oriented agentic systems. These systems need to read documents, retain conversation history, call tools, generate sub-agents, and iterate repeatedly, thereby increasing demand for context storage and retrieval and potentially making this round of memory demand more structural. At the same time, AI is reshaping role structures and cost efficiency in software development and knowledge-work processes, though uncertainty remains around commercialization and profit distribution.

Analysis framework

The report combines weekly industry event tracking with company case analysis: it uses Micron's revenue and long-term customer agreements to observe how AI demand is transmitted to the memory industry; uses Informa's sum-of-the-parts valuation and earnings cadence to assess the value of offline B2B events; uses SAP CEO commentary to analyze the impact of AI coding agents on software development organizations; and uses Springer Nature's technology activities to evaluate AI tools' efficiency improvements in academic publishing workflows.

Methodology notes

• Industry event trackingWeekly software and services event scan

  Identify marginal industry changes through key company events and research summaries.

  The report lists important events this week, including Micron's results, research on Informa, an interview with SAP's CEO, and Springer Nature's technology activities, and distills their implications for the European software and services sector.

• Demand transmission analysisInterpreting AI workloads' impact on memory demand

  Infer changes in hardware and storage demand from shifts in AI application patterns.

  The report argues that agentic AI requires longer context, more frequent storage and retrieval, and more complex end-to-end workflows, which may reinforce demand for memory and data storage.

• Valuation analysisSum-of-the-parts valuation (SOTP)

  Estimate company value by business segment and comparable transactions.

  The report mentions a new sum-of-the-parts valuation analysis for Informa, concluding that its fair value is more than 20% above the current level, with Live B2B Events deserving a relatively high valuation multiple.

• Process efficiency analysisAI-driven optimization of academic publishing workflows

  Assess how AI tools alleviate existing process bottlenecks.

  Springer Nature's tools cover journal and funding matching, initial manuscript assessment, reviewer recommendations, and manuscript transfer, with the goal of shortening publication cycles and improving the experience of authors, reviewers, and editors.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Micron

  A beneficiary of memory and data storage demand driven by AI data centers and agentic workflows.

  Strengths

  FY3Q revenue rose nearly 350% year-over-year to $41 billion, and the company signed 16 long-term strategic customer agreements, indicating strong demand.

  Weaknesses

  The memory industry has historically been cyclical, and rising prices and capacity expansion may create volatility.

  Comparison

  Compared with traditional one-off AI prompts, agentic systems rely more on conversation history, document reading, and context retrieval, resulting in higher memory demand.

  Risks

  If AI data center buildout slows, memory prices fall, or execution of long-term agreements disappoints, earnings elasticity could reverse.

• Informa

  Against a backdrop of AI content proliferation, offline B2B events provide real human connection and business conversion scenarios.

  Strengths

  The report believes fair value is more than 20% above the current level, and Live B2B Events has strong valuation potential.

  Weaknesses

  There is a scheduling shift of more than $175 million in event revenue between the first and second halves of 2026, which may disturb short-term year-over-year performance.

  Comparison

  The report references valuation benchmarks from industries such as business services, luxury goods, and capital goods for Live B2B Events.

  Risks

  If the market does not accept a high multiple for offline events, or if event scheduling changes affect investor expectations, valuation rerating may be delayed.

• SAP SE

  An enterprise software company whose management believes AI coding tools and agents will significantly change software development functions.

  Strengths

  The company is emphasizing high-quality AI talent and proposing a model of replacing traditional hiring volume with higher-skilled talent.

  Weaknesses

  Reshaping the role structure may create pressure in organizational execution, compensation competition, and talent scarcity.

  Comparison

  Compared with traditional software development teams, future demand may shift more toward product managers with business understanding, AI talent, and data scientists.

  Risks

  AI coding productivity may fall short of expectations, organizational transformation may become imbalanced, or key talent supply may be insufficient.

• Springer Nature

  An academic publisher that is using AI tools to improve publishing workflow efficiency.

  Strengths

  Its tools cover journal and funding matching, initial manuscript screening, reviewer recommendations, and manuscript transfer, helping alleviate publication cycles averaging more than 200 days.

  Weaknesses

  The academic publishing industry itself has high margins, and how further efficiency gains will be distributed among authors, platforms, and customers remains to be seen.

  Comparison

  Springer Nature is the second-largest participant in academic publishing, behind RELX's Elsevier and ahead of some peers such as Informa's Taylor & Francis.

  Risks

  Whether adjacent research workflow tools can be monetized effectively remains an open question.

• RELX

  One of the leaders in academic publishing, with Elsevier and AI-related research workflow tools under its portfolio.

  Strengths

  It has leading scale and a strong content ecosystem in academic publishing, and may benefit from AI tools improving research and publishing workflow experiences.

  Weaknesses

  There is still uncertainty around AI's long-term impact on content generation, retrieval, and publishing economics.

  Comparison

  The report identifies RELX's Elsevier as Springer Nature's main leading peer and also mentions tools such as RELX's LeapSpace.

  Risks

  If AI tools weaken the traditional publishing value chain or fail to commercialize adequately, valuation support may come under pressure.

• Wolters Kluwer

  A professional information and workflow company within European software and services coverage, affected by the trend of AI tool adoption.

  Strengths

  Professional information and workflow scenarios have the potential to embed AI into products and processes.

  Weaknesses

  The report provides limited discussion of its specific operating data, using it more as a comparison company related to academic publishing and professional information.

  Comparison

  It is discussed alongside RELX, Informa, and Springer Nature in relation to AI's impact on publishing and professional workflows.

  Risks

  AI product implementation, customer willingness to pay, and regulatory compliance requirements may affect actual returns.

Key data

• Report date2026-06-28The cover page of the report shows June 28, 2026 03:00 PM GMT.
• Industry viewIn-LineThe report cover lists the European software and services industry view as In-Line.
• Micron FY3Q revenue$41 billion, up nearly +350% year-over-yearThe report states that revenue in the same period last year was about $9 billion, with strong AI demand and rising memory prices jointly driving performance.
• Micron long-term customer agreements16The report views this as one piece of evidence that this round of memory demand may be more structural.
• Informa fair value assessment>20% above the current levelBased on sum-of-the-parts valuation analysis, the report believes Informa still has upside from current value.
• Informa valuation multipleLive B2B Events: high-teens FY26 EV/EBIT; group about 16xThe group at about 16x refers to the valuation multiple on the target price basis.
• Informa growth and returnsAbout 6% underlying revenue growth; about 12% EPS growth; >2.5% annualized dividend yieldThe EPS figure includes the impact of buybacks.
• Change in Informa revenue timing>$175 million of event revenue shifted from 1H to 2HThe report believes this mainly reflects intra-year seasonality changes, but it may cause apparently weaker year-over-year performance in 1H.
• Springer Nature publication cycleAverage about 200 days; Nature-branded journals about 300 daysThe technology activities indicate that AI tools are intended to reduce process friction and shorten publication cycles.
• Researcher AI adoption rateAbout 75% use AI tools; about 1/3 are willing to payFrom Springer Nature management's remarks during the technology activities.

Impact & implications

From an investment perspective, AI's impact is not only reflected in model and application revenue, but is also spreading to memory, data storage, software development productivity, the value of B2B events, and the efficiency of academic publishing workflows. Memory companies may benefit from more persistent agentic AI workloads; software companies need to reconfigure talent structures; and companies with scarce offline connection scenarios or high-quality professional content workflows may create differentiated value in an environment flooded with AI-generated content.

Risks

• Memory demand may still be cyclical, and if the market over-extrapolates AI-driven structural demand, valuation and earnings expectations may become volatile.
• Informa's event revenue rescheduling between 1H and 2H may cause weaker short-term year-over-year performance and consensus revisions.
• AI's impact on academic publishing includes both workflow efficiency upside and uncertainty around content economics, monetization models, and industry profit allocation.
• Software companies such as SAP that push AI-driven restructuring of development organizations may face risks related to talent scarcity, rising compensation, and execution of organizational transformation.
• The report discloses that Morgan Stanley has investment banking, shareholding, or other service relationships with multiple covered companies; investors should treat this research as one input to decision-making rather than the sole basis.

What to watch

• Micron's subsequent memory pricing, AI data center orders, and execution of long-term strategic customer agreements.
• Whether agentic AI continues to increase demand for context storage, retrieval, and data storage.
• The impact of Informa's 1H26 and 2H26 revenue scheduling changes on consensus, valuation, and investor expectations.
• SAP's actual execution effectiveness in adjusting role structures around AI coding tools, product managers, and data scientists.
• AI tool adoption rates, willingness to pay, and commercialization paths at academic publishers such as Springer Nature and RELX.
• Whether the European software and services sector's relative market performance over the next 12-18 months continues to align with the In-Line view.