Microsoft Stock Surges on Plans for Custom AI Chips
Microsoft stock rose by almost 2% on Monday as investors maintained their confidence in large-cap software leaders, despite a broadly softer technology sector. The Nasdaq declined 0.25%, while the S&P 500 edged up 0.03%. Microsoft's move to develop its own AI chip program, Maia, and reduce reliance on Nvidia processors is gaining momentum.
The company plans to unveil its new Maia 300 AI chip this fall, with potential production of over 1 million chips by scaling up Taiwan Semiconductor Manufacturing Co Ltd (TSM) capacity. Microsoft's current goal is to secure more than 300,000 Maia 300 chips for delivery in 2027.
The Redmond-based company has been working on its Maia chip program since November 2023 and introduced the second-generation Maia 200 AI chip built by TSMC using 3-nanometer technology. By developing custom chips, Microsoft aims to reduce dependence on Nvidia's expensive processors and offer more cost-efficient computing options for cloud providers.