Microsoft New AI Chip Could Be a Big Win for Marvell and TSMC

This article first appeared on GuruFocus.

Microsoft (NASDAQ:MSFT) could soon give its in-house AI chip effort another test, with a potential Maia 300 launch drawing attention to Marvell Technology (NASDAQ:MRVL) and Taiwan Semiconductor Manufacturing (NYSE:TSM).

Wedbush Securities said a successful rollout could improve the outlook for suppliers involved in Microsoft’s custom silicon program. Analyst Matt Bryson noted that Microsoft’s hardware efforts may be reaching a stage where its chip designs could begin gaining more traction after several development cycles.

Marvell could be among the companies with the most to gain if Microsoft places a sizable production order. Taiwan Semiconductor could also benefit because it is expected to provide manufacturing capacity for the chips.

The Maia 300 may also add another competitor to Nvidia (NASDAQ:NVDA) in AI inference, the process of running trained models to generate responses. Still,…