Technology giant Microsoft (NASDAQ:MSFT) is developing new network gear to enhance the performance of its Maia Artificial Intelligence (AI) server chip, The Information reported. Per the report, the company has roped in Pradeep Sindhu, co-founder of Juniper Networks (NYSE:JNPR), a networking products maker, to lead this endeavor.
The report mentioned that the project’s completion may extend beyond a year. If successful, it is expected to streamline the training of OpenAI’s models on Microsoft servers, leading to cost reductions. This should lower MSFT’s dependency on Nvidia’s (NASDAQ:NVDA) chips. The company launched the Microsoft Azure Maia AI accelerator last year, which is optimized for AI-related tasks.
With the company focusing on making its own custom chip, it is also fortifying its AI and cloud infrastructure and integrating AI functionalities across its offerings. This move is expected to help the company win more customers and enhance operational efficiency.
What Is Outlook for Microsoft Stock?
MSFT stock has gained nearly 61% in value over the past year. Despite this notable increase in its price, analysts remain upbeat about MSFT’s prospects due to its AI initiatives.
Microsoft stock sports a Strong Buy consensus rating, reflecting 32 Buys, one Hold, and one Sell. Analysts’ average price target of $469.45 suggests 16.55% upside potential from current levels.
