Tech giant Microsoft (MSFT) announced a massive $30 billion investment in artificial intelligence infrastructure in the United Kingdom by 2028. This includes $15 billion in capital spending and another $15 billion to grow its UK operations. A major part of this plan is to build the UK’s largest supercomputer, which will feature over 23,000 high-powered graphics processing units. Microsoft is partnering with British cloud computing company Nscale to make this project happen.
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The announcement comes as President Donald Trump is on a state visit to the UK. He arrived Tuesday evening and will meet King Charles and Queen Camilla at Windsor Castle. At the same time, UK Prime Minister Keir Starmer is facing pressure to bring stability to the government after a major cabinet reshuffle and the resignation of Deputy Prime Minister Angela Rayner over a housing tax scandal.
Nevertheless, Microsoft President Brad Smith commented that his view of the UK has improved over the years. He had criticized the country in 2023 for trying to block Microsoft’s $69 billion acquisition of video game company Activision-Blizzard, although regulators later approved the deal. Now, Smith says he’s optimistic about the UK’s direction, adding that such a major investment wouldn’t have been possible a few years ago due to a tougher regulatory climate and lower demand for AI infrastructure.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the last three months. In addition, the average MSFT price target of $625.78 per share implies 22.9% upside potential.
