Tech giant Microsoft (MSFT) has rolled out its first major cluster of Nvidia’s (NVDA) GB300 NVL72 systems through its Azure cloud platform. These systems include over 4,600 of Nvidia’s new Blackwell Ultra GPUs that are all linked by the high-speed Quantum-X800 Infiniband network. Interestingly, Microsoft CEO Satya Nadella shared on X that this is just the start, as the company plans to scale up to hundreds of thousands of these chips and upgrade every layer of its technology.
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Furthermore, Nvidia called this setup the world’s first large-scale GB300 production cluster. Ian Buck, Nvidia’s VP of Hyperscale and High-performance Computing, said it provides the supercomputing power OpenAI (PC:OPAIQ) needs to run massive AI models with trillions of parameters. Separately, Microsoft’s Nidhi Chappell added that this collaboration will help OpenAI and others roll out advanced AI infrastructure faster than ever. In fact, each virtual machine in this system delivers 37 terabytes of fast memory and 1.44 exaflops of FP4 Tensor Core performance, which is essential for complex reasoning and AI systems.
It is no secret that demand for AI is growing fast. Last month, Nvidia revealed plans to invest up to $100 billion in OpenAI to help build at least 10 gigawatts of AI data centers powered by Nvidia technology. Meanwhile, Microsoft is ramping up its data center investments after spending $88.7 billion in Fiscal 2025 and plans to invest another $30 billion in Q1 of Fiscal 2026, which is a 50% increase from the same period last year.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and one Hold assigned in the last three months. Furthermore, the average MSFT price target of $629.22 per share implies 21% upside potential.
