Microsoft Deploys Maia 200 Chip in Data Centers Amid Bernstein Price Target Hike

Microsoft has begun deploying its Maia 200 chip in data centers to enhance Copilot and Azure performance. The company started with installations in Iowa, with plans to expand to Arizona and other regions. This move aims to scale AI services.

The Maia 200 chip is built on a 3nm process and will help boost the processing power of Microsoft's AI capabilities. The deployment marks an effort by the tech giant to pace its data center buildouts, despite expansion lagging behind cloud revenue growth.

Analysts have taken note of Microsoft's efforts, with Bernstein raising its price target for MSFT to $660 and maintaining an Outperform rating. This comes as traders continue to react to earnings updates on AI-related capital spending, leading to above-normal post-earnings volatility for the company this season.