Microsoft Bets Big on Maia 300 AI Chip as Semiconductor Stocks Slide
Microsoft on Monday unveiled the Maia 300, its third-generation custom AI chip, calling it the company’s biggest bet yet on its own silicon as it works to reduce its dependence on Nvidia and AMD.
The chip uses a multi-chiplet design built on TSMC’s advanced 2-nanometer process, with 288 gigabytes of HBM4 memory and 18 terabytes per second of memory bandwidth. Microsoft says it delivers 40 percent more AI output per unit of power than leading GPU-based systems, and up to seven times the rack-scale throughput of its predecessor, the Maia 200.
“Maia will become the primary AI inference system for Microsoft products and services,” Scott Guthrie, the company’s cloud chief, wrote in a blog post. Microsoft plans to begin large-scale deployment in 2027, with Copilot and GitHub Copilot among the first to benefit.
The announcement landed on a rough day for chip stocks. The iShares Semiconductor ETF fell 2.5 percent, its fifth straight daily decline, after losing about 5 percent last week. Nvidia, AMD and Broadcom all traded lower, while memory makers came under added pressure after Chinese chipmaker CXMT reported progress in advanced DRAM technology.
Investors have grown cautious about the pace of AI infrastructure spending after reports that OpenAI’s annualized revenue fell short of earlier indications. Profit-taking after a strong rally, a 10-year Treasury yield near 5.24 percent and oil prices above $100 a barrel added to the pressure.
The broader market held up better. The Dow rose about 0.4 percent while the S&P 500 slipped 0.1 percent and the Nasdaq fell 0.4 percent. Energy was the best-performing sector as oil climbed, and roughly 330 S&P 500 stocks finished higher in a sign of rotation out of technology.
Wall Street strategists are split on what comes next. Deutsche Bank cut its rating on the tech sector to neutral from overweight, arguing the rotation has run far and risk-reward no longer looks favorable near term. Others note that underlying AI demand remains strong, pointing to TSMC’s 53 percent jump in August revenue and Samsung’s memory-driven earnings.
This week brings fresh tests. Big banks report earnings starting Tuesday, and investors will parse Wednesday’s consumer price index and Thursday’s producer price index for clues on inflation and the Federal Reserve’s next move.