Microsoft partnerships still strong with Nvidia, AMD, says BofA

BofA notes “multiple developments” from Microsoft’s (MSFT) Ignite event, most notably the company unveiling its Arm-based (ARM) Azure Cobalt 100 CPU and 5nm Maia 100 AI chip, which are internal products that were built in-house. Microsoft’s internal silicon launch was widely expected and follows similar initiatives of Google (GOOGL) and Amazon (AMZN), noted the analyst, who sees a niche for custom silicon to support internal workloads, but also views Microsoft’s commitment to extending/maintaining relationships with existing GPU/accelerator suppliers AMD (AMD) and Nvidia (NVDA) highlighting the strong offerings of incumbent accelerator vendors. The firm maintains a Buy rating and $415 price target on Microsoft shares.