President Biden will visit Wisconsin today to announce Microsoft’s (NASDAQ:MSFT) $3.3 billion data center project in Racine County. Microsoft’s facility, located in southeastern Wisconsin, will be built on land originally intended for a $10 billion factory by Taiwan electronics manufacturer Foxconn. However, Foxconn scaled back its plans significantly, despite former President Donald Trump once hailing it as the “eighth wonder of the world.”
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According to the White House, Microsoft’s project is expected to create 2,300 union construction jobs and approximately 2,000 permanent jobs. Moreover, the tech giant will partner with Gateway Technical College to train 1,000 people for data center roles by 2030 and will work to train 1,000 business leaders in AI adoption for their operations.
Microsoft’s Cloud Services – A Key Component of its Revenues
Data centers are vital for cloud computing, providing storage and processing resources for business applications. Microsoft’s cloud services are increasingly important for its revenue. In the fiscal third quarter, the company’s sales rose 17% year-over-year to $61.9 billion, surpassing analysts’ expectations of $60.8 billion.
The Intelligent Cloud division, which includes Azure, accounted for over $26.7 billion, representing more than 40% of total revenues in the fiscal third quarter. Azure sales experienced a 31% year-over-year growth in the same period.
Is Microsoft a Buy or Sell stock?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 31 Buys and one Hold and Sell each. Over the past year, MSFT has increased by more than 30%, and the average MSFT price target of $489.56 implies an upside potential of 19.3% from current levels.
