Microsoft Stock Rallies on New AI Chip Plans and Manufacturing Capacity Talks
Microsoft's stock price has rallied by about 1% to $504.54 in morning trading, driven by news of its plans for a new AI chip called Maia 300.
The company is set to unveil the Maia 300 this fall, with possible public introduction as early as next month.
The move is aimed at reducing Microsoft's dependence on Nvidia's more expensive processors and accelerating production, with Taiwan Semiconductor Manufacturing Co. reportedly being engaged in discussions for manufacturing capacity exceeding 300,000 units for delivery in 2027.
Bernstein SocGen has raised its price target on Microsoft to $660 from $647 while maintaining an Outperform rating, citing the company's measured expansion of its datacenter footprint as a response to investor concerns about overbuilding AI infrastructure.