In an exclusive interview with Nikkei, Microsoft’s (NASDAQ:MSFT) President, Brad Smith, stated that the tech giant is planning to invest $2.9 billion in Japan to advance its AI business.
As part of this plan, Microsoft will deploy advanced AI semiconductors at its two current sites in eastern and western Japan. Additionally, the company will introduce a reskilling program focused on AI in Japan with the goal of training 3 million workers over three years.
Moreover, the company will set up a lab in Japan and will provide 1.5 billion yen ($9.9 million) to both the University of Tokyo and the partnership between Keio University and Carnegie Mellon University. Through this initiative, MSFT intends to fund research projects over the next five years
Microsoft plans to make this announcement when the Japanese Prime Minister, Fumio Kishida, visits the United States.
Is Microsoft a Buy or Sell Right Now?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 33 Buys and one Hold and Sell each. Year-to-date, MSFT stock has gained by more than 10%, and the average MSFT price target of $473.77 implies an upside potential of 11.6% at current levels.
