Microsoft Stock Jumps 1.2% as AI Chip Plans Gain Momentum

Microsoft (NASDAQ:MSFT) stock price rose by 1.2% on Monday, reaching $506.06 per share at its lowest point. The company's trading volume was significantly lower than average, with approximately 30 million shares exchanged during mid-day trading.

The positive sentiment surrounding Microsoft stems from several factors. The firm is planning to unveil its next-generation Maia 300 AI chip in September, which could reduce the company's reliance on Nvidia processors and improve supply flexibility for Azure's AI infrastructure expansion. Bernstein has also raised their price target for Microsoft from $647 to $660, citing sustained AI demand and a measured approach to data-center capacity expansion.

Azure's reported 43% growth, expanding Copilot adoption, and a large cloud backlog are contributing to the bullish investment case. Analysts see potential upside from Microsoft's role in sovereign AI, healthcare applications, and additional compute partnerships. However, some caution that heavy AI infrastructure spending could pressure Microsoft's margins if cloud demand or monetization fails to keep pace with investment.