Microsoft Corp (NASDAQ:MSFT) stock gained almost 2% on Monday as buyers kept leaning into large-cap software leaders, even with Technology stocks broadly softer. The Nasdaq is down 0.25% while the S&P 500 has gained 0.03%.

The big tech giant is moving to unlock more value from its cloud and AI infrastructure business by scaling its in-house Maia chip program and reducing dependence on costly Nvidia Corp (NASDAQ:NVDA) processors.

Microsoft Plans Maia 300 Launch

Microsoft plans to unveil its new Maia 300 AI chip this fall, potentially as soon as next month, The Information reported on Monday, citing people with direct knowledge of the plans.

The Redmond, Washington-based company has discussed securing Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) capacity for more than 300,000 Maia 300 chips for delivery in 2027. Microsoft ultimately aims to secure capacity for more than 1 million Maia 300 chips, though component supplies and ongoing TSMC capacity talks could limit those plans, Reuters reported on Monday.

Custom Chips Could Reduce NVIDIA Reliance

Microsoft introduced its Maia AI chip in November 2023 and rolled out its second-generation Maia 200 in January. The Maia 200, built by TSMC using 3-nanometer technology, includes a significant amount of SRAM, which can give AI systems speed advantages when handling large volumes of user requests.

Microsoft has lagged Alphabet Inc (NASDAQ:GOOGL) and Amazon.com Inc (NASDAQ:AMZN) in scaling its internal AI chip efforts. Google began recognizing revenue from direct sales of its Tensor Processing Units in the quarter ended June, while Amazon has seen growing adoption of its Trainium chips.

Microsoft is now looking to ramp production and persuade major cloud customers such as Anthropic to adopt Maia. The push comes as cloud providers seek alternatives to Nvidia’s expensive processors and look for more cost-efficient computing options inside their data centers.

The Chart Is Extended

Microsoft is trading 18.6% above its 20-day SMA ($429.77) and 17.7% above its 200-day SMA ($433.04), a sign the current run has gotten stretched versus its longer-term trend. That extension matters because it can keep momentum traders engaged, but it also raises the odds of sharper pullbacks if buyers pause.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $552.40. Recent analyst moves include:

  • Tigress Financial: Buy (Raises Forecast to $690.00) (Aug. 5)
  • Bernstein: Outperform (Raises Forecast to $647.00) (July 30)
  • Citigroup: Buy (Raises Forecast to $600.00) (July 30)

Top ETF Exposure

  • Fidelity MSCI Information Technology Index ETF (NYSE:FTEC): 9.91% Weight
  • NYLI US Large Cap R&D Leaders ETF (NASDAQ:LRND): 9.38% Weight
  • Principal Focused Blue Chip ETF (NASDAQ:BCHP): 9.28% Weight

Significance: Because MSFT carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

MSFT Stock Price Activity: Microsoft shares were up 1.67% at $508.34 at the time of publication on Monday, according to Benzinga Pro data.

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