- Microsoft is increasing its investment in Wisconsin to $7 billion for AI data centers.
- A second major AI data center is planned, with the first opening in 2025.
- The site will employ about 500 people initially, growing to 800 with the expansion.
- The facility will host the world’s most powerful AI supercomputer, powered by large numbers of NVIDIA chips.
- Microsoft stock recovered after the announcement, and analysts rate the company as a strong buy.
Microsoft has announced it will raise spending on AI data centers in Wisconsin, pushing its planned investment to $7 billion. The technology company is planning to build a second large AI data center and is expanding efforts to advance in the developing Ai technology sector.
The company said its initial data center project is on schedule to open in 2025. At peak operations, the first center will employ around 500 workers. Once the second center is complete, the total workforce is expected to reach about 800.
Microsoft stated that the site will eventually support the world’s most powerful AI supercomputer, connecting hundreds of thousands of Nvidia chips. “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,” wrote Microsoft President Brad Smith in a blog post. AI supercomputers are large systems designed to process and analyze vast amounts of data much faster than standard computers, supporting advances in areas like healthcare and research.
In recent trading, Microsoft shares had declined by 1.5% in the last month but climbed back by the same amount after the data center expansion was announced. Most analysts maintain a “buy” or “outperform” rating on Microsoft stock. The company shows a 21.86% return year-to-date, according to Truist, with price targets from firms like Raymond James and DA Davidson set at $630 and $650, respectively. Evercore ISI Group reports high historical accuracy in their price targets.
CNN analysts rate Microsoft a 10 out of 10, projecting strong performance in the coming months compared to other major tech peers, known as the “Magnificent Seven” stocks. The company’s shares are currently near the top of their 52-week range and above the 200-day average.
For further context on industry developments, readers can review related news on Nvidia’s $5 billion stake in Intel, which has led to a notable rally in INTC stock.
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