--- title: "Microsoft Stock (MSFT) Rises on a Next-Gen AI Chip Production Report" type: "News" locale: "en" url: "https://longbridge.com/en/news/295419484.md" description: "Microsoft stock rose 1.12% following reports that the company is negotiating with TSMC to produce 300,000 next-generation Maia 300 AI chips by 2027. This move aims to diversify its chip supply beyond Nvidia and Intel amid industry-wide shortages. Despite significant AI spending, MSFT has underperformed over the past year. However, Wall Street analysts maintain a 'Strong Buy' consensus with an average price target of $560.13." datetime: "2026-08-10T14:07:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295419484.md) - [en](https://longbridge.com/en/news/295419484.md) - [zh-HK](https://longbridge.com/zh-HK/news/295419484.md) generator: "portal-rs" --- # Microsoft Stock (MSFT) Rises on a Next-Gen AI Chip Production Report Microsoft (MSFT) stock was up on Monday following a report that the tech giant intends to increase production of its AI chips. According to the latest report, Microsoft is in talks with chipmaker Taiwan Semiconductor Manufacturing Co. (TSM) to ensure manufacturing capacity of its next-generation Maia 300 chip. ### Claim 55% Off TipRanks NVDS: built for a short position on NVDA The new report claims that Microsoft wants TSMC to have 300,000 of these chips ready for delivery in 2027. While Microsoft has yet to reveal this new AI chip, the company is expected to do so this fall. While Microsoft has regularly relied on other chip companies for its AI chips, such as Nvidia (NVDA), Intel (INTC), and Advanced Micro Devices (AMD), today's news suggests that tech companies want to diversify their sources of AI chips. News of Microsoft betting on AI chips isn't surprising. The company has been diving headfirst into AI alongside its industry peers. This has resulted in massive demand for AI chips and other PC components. As a result, the industry has experienced supply bottlenecks. That has also been passed on to consumers with incredibly inflated prices for SSDs, CPUs, GPUs, and RAM. Microsoft isn't the only company that has turned to TSMC for its chip needs. Entertainment company Sony (SONY) and TSMC have revealed plans to invest $6.4 billion to build a new chip factory in Japan. This factory will focus on advanced image sensors, which are used in self-driving cars and AI robotics. ## **Will Microsoft's AI Bet Pay Off?** That's an important question for investors in MSFT stock. While the company has continually increased its AI spending, reaching into the hundreds of billions of dollars, this hasn't provided a major benefit to MSFT stock. For example, today's news sent MSFT stock 1.12% higher. While that builds on a 5.15% year-to-date gain, the stock was still down 4.17% over the past 12 months. If Microsoft can't justify its AI spending with results, investors could sour on the shares. ## **Is Microsoft Stock a Buy, Sell, or Hold?** Even with spending concerns, analysts remain bullish on MSFT stock. Wall Street's consensus analyst rating rating for Microsoft is Strong Buy, based on 34 Buy and one Hold rating over the past three months. With that comes an average MSFT stock price target of $560.13, representing a potential 10.37% upside for the shares. 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