Microsoft (MSFT) plans to raise its spending on AI data centers in Wisconsin, USA, to $7 billion, planning a second massive AI data center. The company has ramped up its spending on artificial intelligence data centers and innovation in 2025, looking to keep up in the ongoing AI race among big tech. Microsoft said Thursday that the initial data center remains on track to open next year and will employ about 500 people at its peak, expanding to about 800 once the second data center is complete.
In addition, Microsoft announced Thursday that the site would eventually house the world’s most powerful AI supercomputer, connecting together hundreds of thousands of powerful chips from Nvidia (NVDA). “This is where the next generation of AI will be trained, setting the stage for breakthroughs that will shape the future. New discoveries in medicine, science, and other critical fields will start right here, with the models we train in Wisconsin,” Microsoft President Brad Smith said in a blog post.
Microsoft Looks to Rescue MSFT Slump in Last 30 Days
Shares in Microsoft stock (MSFT) have been slumping in the past month by 1.5%. However, it has recovered by the same percentage this week following the AI data center announcement. Analyst sentiment remains positive, with multiple firms reaffirming a buy rating, indicating potential for significant upside in MSFT stock. With a recently reaffirmed Buy rating from Truist and a 21.86% year-to-date return, Microsoft is positioned for continued growth in the tech sector. Thus, the stock may be ready to break its recent 1-month skid.
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Most analysts rate Microsoft as ‘Outperform’ or ‘Buy’, with price targets significantly higher than the current market price of $510.02. At press time, MSFT is trading near the top of its 52-week range and above its 200-day simple moving average. Analysts like Raymond James and DA Davidson have set aggressive price targets of $630 and $650, respectively. Evercore ISI Group shows high accuracy in price target predictions with a 99.91 score, reflecting strong historical performance. Meanwhile, CNN analysts rate Microsoft MSFT a 10/10 stock investment, projecting it to be a top performer in the coming months compared to its Magnificent Seven stock rivals.