It was a pretty big day for tech giant Microsoft (NASDAQ:MSFT) today, as several items emerged in its video gaming operations, and it planned to show off new chips. This left investors a bit cold, though, as Microsoft shares were down fractionally in the closing minutes of Thursday’s session.
Xbox featured the biggest news, as first, it rolled out a new controller for the platform. That by itself might not mean so much, but the Proteus is a little something special. It’s geared specifically toward “accessibility,” which means that individuals with disabilities can better get in on the field. The Proteus is modular, which means it can be taken apart, reassembled, and certain parts can be replaced with other parts that may be better suited toward an individual’s unique needs.
However, Microsoft is also reducing the exclusivity of its titles, pushing for “no red line” in terms of what games could be brought to its biggest rival, Sony’s (NYSE:SONY) PlayStation. While certainly, some of these are a good idea, it’s easy to note that, without exclusivity, the need to own a Microsoft console drops through the floor.
And Then the Chips
Microsoft also made a move into the chip sector, with its 64-bit Cobalt chips. The Cobalt chip, as described by executive VP of the Cloud and AI group Scott Guthrie, is the “…most cost-effective GPU out there right now for Azure OpenAI.” That should make these chips a valuable new addition to Microsoft’s lineup and cause significant concern for competitors in the AI infrastructure field. Microsoft plans to offer these as part of a public preview event at its Build conference, taking place next week, according to a TechCrunch report.
Is Microsoft a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 31 Buys, one Hold and one Sell assigned in the past three months, as indicated by the graphic below. After a 35.33% rally in its share price over the past year, the average MSFT price target of $489.90 per share implies 16.37% upside potential.
