Microsoft Maia 300 AI chip launch targets reduced Nvidia reliance, marking major hyperscaler entry into training silicon.

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

The company 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 to unveil its new Maia 300 AI chip this fall, potentially as soon as next month, according to The Information, which cited 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.

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.

The company 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.

Microsoft shares were up 1.67% at $508.34 at the time of publication on Monday. The stock is trading 18.6% above its 20-day simple moving average ($429.77) and 17.7% above its 200-day simple moving average ($433.04), indicating the current run has gotten stretched versus its longer-term trend. The stock carries a Buy rating with an average analyst price forecast of $552.40.