"Microsoft Warns Of Service Disruptions If It Can't Get Enough AI Chips For Its Data Centers" - CNBC
Portfolio Pulse from Happy Mohamed
Microsoft has updated its annual report to highlight the importance of securing GPUs for its data centers, emphasizing the critical role of these units in its growing cloud business. The company has been increasing capital expenditures, including for GPUs, to meet the rising demand for cloud-based AI services. Microsoft has also signed an agreement with Nvidia-backed CoreWeave to secure enough capacity. The company is also speeding up the deployment of its own custom AI processor.
July 28, 2023 | 3:38 pm
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POSITIVE IMPACT
Microsoft's increased focus on securing GPUs for its data centers and the rising demand for its cloud-based AI services could potentially drive its stock price up in the short term.
Microsoft's increased capital expenditures on GPUs and its partnership with Nvidia-backed CoreWeave indicate a strategic focus on enhancing its cloud-based AI services. This could potentially attract more customers and increase revenues, positively impacting its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Nvidia, as a GPU maker and partner of Microsoft, could potentially benefit from the increased demand for GPUs.
As Microsoft increases its demand for GPUs and partners with Nvidia-backed CoreWeave, Nvidia could potentially see an increase in its sales and revenues, which could positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70