Microsoft Stock Climbs Toward $540 as Maia 300 AI Chip Debuts, Targets Hit $600

Microsoft stock was changing hands near $540 in Monday trading, up about 1 percent, after the company unveiled its third-generation Maia 300 AI accelerator and two Wall Street banks raised 12-month price targets to $600. The stock traded around $539.90 at 1 p.m. Eastern on October 12, 2026, according to live market data, with analysts calling for more upside as Microsoft pushes its own AI silicon against Nvidia's dominance.

The catalyst was a double header. On October 12, Raimo Lenschow at Barclays reiterated a Buy rating and raised the firm's 12-month target to $600 from $512, and Brad Zelnick at Deutsche Bank reaffirmed his Buy with a move to $600 from $550, according to the analyst notes. The two targets imply roughly 11 percent upside from the current price and put Microsoft near the top of its peer group for AI megacap expectations.

Related reading: Microsoft stock jumps 2% to $533 as an AI and Azure rally returns.

At the same time, Microsoft presented its third-generation in-house AI chip, the Maia 300. The company said it plans a 2027 production ramp, with 96 Maia 300 chips per data center rack and about a sevenfold gain in AI token processing per rack versus GPUs, plus a roughly 40 percent improvement in processing efficiency per megawatt, according to Microsoft's press release on the launch. Microsoft said its 365 Copilot products would be among the first to benefit from the faster, cheaper inference.

The move matters because it is direct competition with Nvidia. Microsoft has been the single largest buyer of Nvidia Hopper GPUs, but it has developed its own silicon since 2019 to trim that dependence. Nvidia shares traded about 1 percent lower in Monday trading, hovering near $226.50, as the Maia 300 news spread, according to live market data. The chip race is the story behind the stock's climb; the current quarter of AI capex is the frame every investor is watching.

Related reading: ASTS Stock Bounces Toward $53 After Deutsche Bank Says SpaceX Threat Is Overblown.

Context keeps the rally in perspective. The average target across 37 analysts tracked by TipRanks stands near $587, with estimates ranging from a low of $440 to a high of $725. Microsoft's roughly $4 trillion market capitalization makes it one of the largest single weights in the S&P 500, so the stock's direction moves the whole index. The broader tape was mixed on October 12, with the S&P 500 and Nasdaq slightly lower while oil rose, a reminder that a single stock can only carry so much on a heavy day.

For holders, the two near-term dates are earnings and the Fed. Microsoft reports fiscal first quarter results on October 28, when investors will look for Maia 300 cost details and cloud growth. The consumer price index is due this week, and futures markets were pricing a low probability of a rate hike this month, which keeps the valuation debate alive for the largest AI names. The search answer is simple: Microsoft stock is up because analysts see more AI upside and the company is building the chips to capture it, and the number to watch is 600.

Related reading: MRVL Stock Pauses After $20B Target: What Marvell's Investor Day Changes.

Related reading: United Airlines Stock Drops 2% as Susquehanna Cuts Price Target to $150.

This content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Consult a qualified financial advisor before making investment decisions.