Microsoft (MSFT) is now reportedly exploring superconducting power for its AI data centers, a move that could spark the stock. On Tuesday, the tech giant announced it is exploring using superconducting power lines in its data centers, which could potentially accelerate its massive U.S. build-out of the server warehouses by making them more energy-efficient. MSFT stock is up a fraction of a percent in the past week, trading just above $400 a share.
Microsoft said recent tests of high‑temperature superconductor cables have shown that the power lines can deliver the same amount of electricity as traditional cables while taking up less space. The company also said the technology could allow it to increase electrical density inside facilities without expanding infrastructure like substations. Microsoft did not disclose its investment in superconducting technology or when it would be able to deploy them in its data centers.
“The technology helps us scale power density without expanding our physical footprint,” stated Husam Alissa, an executive at Microsoft’s CO+I CTO Office. “It can also help us reduce the size of power transmission infrastructure and lower community impact.” Furthermore, Microsoft is reducing reliance on OpenAI by developing its own AI models and expanding its sovereign cloud partnerships. This strategy is crucial for maintaining competitiveness in the rapidly evolving AI sector.
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Wall Street sentiment around MSFT remains unchanged to end the week, as most firms are bullish with solid ratings. On February 3, Piper Sandler maintained an Overweight rating and a $600 price target on Microsoft Corporation (MSFT). The firm remains bullish on the company, given a supportive backdrop for hyperscalers and select vertical software companies. Meanwhile, Bernstein also has a $645 forecast for MSFT stock in 2026, and DA Davidson recently upgraded their rating to Buy with a price target of $650.