Description
Microsoft Is Betting Big on NVIDIA GPUs — But Will Custom Chips Save Its AI Ambitions?
Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s
all-in commitment to artificial intelligence (AI). As AI reshapes industries, Microsoft has found itself
playing catch-up against Google, Amazon, and Meta, all of whom have already developed custom
AI chips. By investing heavily in Nvidia’s cutting-edge Hopper GPUs, Microsoft has managed to
build out a formidable AI infrastructure but at a significant cost. Meanwhile, its competitors are
deploying millions of their own custom AI chips, reducing reliance on third-party suppliers. As
Nvidia’s chips are expected to be deprecated in the coming years, Microsoft faces a steep
challenge: ramping up its proprietary AI chip development while maintaining a competitive edge in
cloud and AI services. Despite its late entry, several key drivers could enable Microsoft to weather
these struggles and emerge as a dominant force in AI.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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