Microsoft has unveiled a substantial $10 billion investment plan in Japan over the next four years, aimed at enhancing the country's AI capabilities and addressing a projected shortfall of over 3 million AI workers by 2040. This initiative, in collaboration with local firms like SoftBank, will involve training one million engineers and boosting cybersecurity efforts. While the company's stock has recently faced challenges due to concerns over AI profitability and fierce competition, analysts view this strategic investment as a potential catalyst for strengthening Microsoft's leadership in AI and cloud infrastructure.
“It’s likely better for hyperscalers like $MSFT, AlChip, $MRVL, $AMZN to invest in Sivers to secure their CPO supply chain then have it being bought out by one of their competitors.”
“Since everyone publicly knows now Broadcom can just go and buy Marvell’s photonics chokepoint vulnerability (Amazon/Microsoft ASIC programs) for a rounding error of $350m…”
“Probably put $SIVE on the radar for $QCOM, $MRVL, $AVGO, AlChip, Mediatek, $AMZN, $META, $MSFT venture arms now?”
“you're looking at forward projections of revenue and you've got Amazon lagging Microsoft there.”
“Intel doesn't even have a product that's as good as the products that Amazon or Microsoft or Alphabet is producing for these markets. So Intel is well behind and still doesn't have a strategy complete.”
“Companies like Amazon, Microsoft, Alphabet, and Meta Platforms are scheduling hundreds of billions of dollars in capital expenditures and perhaps even trillions of dollars over these next several years.”
“In the most recent period, Microsoft's return on invested capital was 24.2% and it's held above 20% for the past few years before dropping from the peak levels of 39.8%.”
“Microsoft and Amazon benefited during the pandemic. Their businesses were positively affected by the pandemic and the economic reopening had been a negative for each of their businesses.”
“I really felt that Microsoft stock was an attractive opportunity so much so that I bought Microsoft stock following that quarterly earnings result and the subsequent 12% price crash.”
“I also have both of these companies rated as two of the best stocks you can buy right now.”
“Amazon has long been in this business and its fixed asset base is much larger than Microsoft's fixed asset base.”
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