Microsoft's $100 Billion Generative Artificial Intelligence (AI) Splurge Could Send This Stock Soaring
The race to develop infrastructure for powering generative artificial intelligence (AI) applications intensified following reports that (NASDAQ: MSFT) and OpenAI are expected to invest $100 billion to $115 billion in a new supercomputer called Stargate, according to tech-focused business publication The Information.
While Microsoft and OpenAI themselves haven't released any details, the two companies are reportedly in the third phase of a five-phase project, of which Stargate is to be the fifth phase. The article suggests that a significant chunk of the budget for the project is likely to be spent on semiconductors, and the goal is for the supercomputer to go online in 2028.
To put things in perspective, Stargate could be 100 times more expensive than what it costs to build a massive data center right now, and the projected outlay on the project would be more than triple Microsoft's capital spending last year. There is a solid way for investors to capitalize on this potentially massive AI investment from Microsoft -- Arm Holdings (NASDAQ: ARM).
Source Fool.com
Microsoft Corp. Stock
With 108 Buy predictions and 1 Sell predictions Microsoft Corp. is one of the favorites of our community.
As a result the target price of 418 € shows a slightly positive potential of 7.39% compared to the current price of 389.25 € for Microsoft Corp..
