AI Chip Rumors: What's Going On With Microsoft Stock Today?

Microsoft Corp MSFT shares are trading higher Tuesday. The stock may be getting a lift following a report that the company has been developing an artificial intelligence chip.

According to a report from The Information, Microsoft has been developing its own AI chip that can power large language models responsible for generating human-like language as seen in Microsoft's ChatGPT. 

The report indicates that Microsoft has been developing the chip under the code name Athena since early 2019, citing two people with direct knowledge of the project. The chips are reportedly already available to a select group of employees at Microsoft and OpenAI for testing. 

Microsoft aims to save time and money by developing its own AI chip, so it no longer has to go through other chipmakers like Nvidia Corp NVDA. 

See Also: When ChatGPT Parent's CEO Sam Altman Warned World May Not Be 'Far From Potentially Scary' AI

Jefferies analyst Brent Thill also maintained Microsoft with a Buy rating and raised the price target from $310 to $325. 

Microsoft is set to report fiscal third-quarter financial results on April 25. The company is expected to report earnings of $2.23 per share on quarterly revenue of $51.04 billion, according to estimates from Benzinga Pro.

MSFT Price Action: Microsoft shares were up 0.59% at $290.49 at the time of writing, according to Benzinga Pro.

Photo: Lukas from Pixabay.