Microsoft Stock Rises as Tech Giant Takes Aim at Nvidia’s AI Chip Dominance

This article first appeared on GuruFocus.

Microsoft (NASDAQ:MSFT) shares rose 1% in Monday morning trading as the company outlined plans to shift more AI workloads to its own Maia chips, according to a company blog post published Monday.

Microsoft introduced Maia 300, the third generation of its custom AI accelerator, with production deployments due to start in 2027. It aims to expand the Maia family to multi-gigawatt capacity and fit 96 chips in each rack, twice the Maia 200 configuration. Maia 200 is already running production workloads, including Copilot, with GitHub Copilot and Microsoft Foundry expected to follow by year-end.

The company says Maia 300 could process up to seven times as many AI tokens per rack as its predecessor and deliver 40% more tokens per megawatt than leading GPU systems. These efficiency gains could help address the computing and electricity demands of expanding AI services.

Nvidia chips will remain part of Microsoft’s infrastructure, especially for training models, and Microsoft also uses processors from Advanced Micro Devices. Still, broader Maia deployment could give the software maker more control over costs and supply. Whether outside cloud customers will adopt Maia remains uncertain.