On Thursday, reports surfaced suggesting that Microsoft (NASDAQ:MSFT) was partnering with AMD (NASDAQ:AMD) to venture into the AI processor market, sparking skepticism among some investors and media outlets. However, a Microsoft spokesperson clarified that the tech giant isn’t involved in developing its own processor.
Microsoft’s Frank Shaw informed The Verge that AMD isn’t part of Project Athena, Microsoft’s initiative to create an artificial intelligence processor. However, Shaw didn’t comment on any potential collaboration between Microsoft and AMD to financially support further expansion into AI processors.
Nevertheless, both stocks are up in today’s trading session. However, it appears that analysts expect more out of AMD stock than MSFT stock. Indeed, with an average price target of $98.38 per share, it offers investors over 11% upside potential.