Microsoft (NASDAQ: MSFT) Stock Falls Amid Surplus Chip Discovery
Microsoft (NASDAQ: MSFT) is facing a significant obstacle in its artificial intelligence (AI) initiatives. The tech giant has more AI chips in its inventory than it can power due to insufficient electricity supply. This issue has caused concern among investors, leading to a modest decline in MSFT stock during Tuesday’s trading session.
Electricity Shortage Impacting Microsoft
CEO Satya Nadella disclosed the challenge faced by Microsoft. Unlike many assumptions, the problem isn’t a shortage of AI chips, but rather a lack of adequate electricity to utilize them. Currently, Microsoft has numerous chips that are unable to function due to power constraints.
This situation is not unique to Microsoft. Several tech companies are investing in alternative power sources, including modular nuclear reactors, to ensure they can meet the growing energy demands of data centers and AI operations. As conventional electricity supplies struggle to keep up, residential electric costs are rising, partly fueled by this increased demand.
Upcoming Xbox Game Pass Titles
In more upbeat Microsoft news, the Xbox Game Pass lineup for mid-November looks promising. With the holiday season approaching, gamers have exciting titles to look forward to. Notably, “Call of Duty: Black Ops 7” will be available on release day, November 14.
- Dead Static Drive
- Whiskerwood
- Voidtrain
- Great God Grove
- Lara Croft and the Temple of Osiris
These titles will enhance the gaming experience as players prepare for the Thanksgiving holiday.
Analyst Ratings for Microsoft Stock
On Wall Street, the outlook for MSFT stock remains positive. Analysts have issued a Strong Buy consensus rating, with 32 Buys recorded in the last three months. Over the past year, Microsoft shares have surged by 25.66%.
The average price target for MSFT now stands at $635.54 per share, suggesting a potential upside of 24.42%. Investors are eager to see how Microsoft addresses its energy challenges while continuing to expand its AI capabilities and gaming offerings.
