microsoft, openai and nvidia Updates

Microsoft's stock experienced a notable dip following reports from The Information suggesting the company lowered its AI software sales goals due to customer resistance. Initial reports indicated a more than 2% fall in Microsoft's stock to $476.94, with some sales teams for products like Azure Foundry reportedly missing their 50% growth targets last fiscal year. Microsoft, however, denied cutting any sales quotas or targets for its AI products, clarifying that the reports confused growth targets with sales quotas. Despite strong earnings, including $77.7 billion in revenue and Azure revenue climbing 40% year-on-year in the first quarter of fiscal 2026, clients are reportedly hesitant to fully adopt new AI tools like Copilot, often preferring OpenAI's ChatGPT. In related market news, Wolfe Research analysts noted signs of "AI fatigue" in the stock market. While Nvidia's recent strong sales helped ease concerns about an AI bubble, a basket of other major AI stocks, including Microsoft, Amazon, and Meta, have underperformed the S&P 500 over the last three months. Conversely, Alphabet shares have seen a rise. Microsoft CEO Satya Nadella also weighed in on the broader AI landscape, suggesting fully autonomous AI is "far-fetched" and emphasizing the need for AI to prove its broad economic value while acknowledging the industry's strain on the electric grid. Meanwhile, Marvell Technology is making significant moves in the AI hardware market, announcing its acquisition of the semiconductor startup Celestial AI for $1.1 billion in cash and stock. Celestial AI, founded in 2019, specializes in photonic interconnect technology designed to enhance AI chip performance and had previously raised over $100 million from investors like Microsoft and Nvidia. This acquisition, expected to finalize in the second half of fiscal year 2025, aims to boost Marvell's presence in next-generation AI infrastructure. Separately, Dell is also recognized as a strong player in the AI market. On a global scale, investing in "green" computing could unlock up to $1.5 trillion in economic value for Africa by 2030, addressing the "compute paradox" where AI talent exists but affordable GPUs, reliable power, and coordinated investment are lacking. Companies like IXAfrica, Microsoft, G42, and Cassava Technologies are actively building infrastructure and deploying GPUs across the continent.

Key Takeaways

• Microsoft's stock fell due to reports of customers resisting new AI products and missed sales growth targets for tools like Azure Foundry and Copilot.
• Microsoft denied lowering AI sales quotas or targets, stating the reports confused growth targets with sales quotas.
• Marvell Technology announced the acquisition of Celestial AI for $1.1 billion in cash and stock to expand its AI infrastructure offerings.
• Celestial AI, a startup specializing in photonic interconnect technology for AI chips, had previously secured investments from Microsoft and Nvidia.
• Wolfe Research identified signs of "AI fatigue" in the stock market, with many AI stocks, including Microsoft, Amazon, and Meta, underperforming the S&P 500.
• Alphabet shares have risen despite the broader "AI fatigue" observed in other major tech stocks.
• Microsoft CEO Satya Nadella expressed skepticism about fully autonomous AI and highlighted the industry's strain on the electric grid.
• Africa faces a "compute paradox" with strong AI talent but a lack of affordable GPUs, reliable power, and coordinated investment.
• "Green" computing investment could unlock up to $1.5 trillion in economic value for Africa by 2030, with companies like Microsoft contributing to infrastructure development.
• Dell is considered a strong player in the artificial intelligence market.

Microsoft stock falls as customers resist AI products

Microsoft's stock (MSFT) dropped on Wednesday. This happened after a report from The Information said the company cut its sales goals for AI software. Customers are reportedly not buying the new AI products as much as expected. Microsoft's stock fell more than 2% to 476.94 in morning trading.

Microsoft stock drops on report of lower AI sales goals

Microsoft's stock fell about 3% after The Information reported the company lowered its AI sales goals. The report said traditional customers are not willing to pay more for new AI technology. Microsoft later told CNBC it did not lower sales quotas, and The Information updated its headline to "Microsoft Lowers AI Software Growth Targets as Customers Resist Newer Products." Earlier this year, Bloomberg reported that Microsoft salespeople struggled to sell Copilot, with customers preferring OpenAI's ChatGPT.

Microsoft denies cutting AI software sales goals

Microsoft shares changed course on Wednesday after the company denied a report about cutting its AI software sales goals. Microsoft told CNBC that it has not lowered any sales quotas or targets for its AI products. The stock had initially slipped on the earlier report.

Marvell shares rise on possible Celestial AI purchase

Marvell Technology Inc. (MRVL) shares rose Tuesday morning due to news of a potential acquisition. Marvell is reportedly in talks to buy the AI startup Celestial AI for over $1 billion. Celestial AI developed a special photonic interconnect technology that can greatly improve AI chip performance. This acquisition would help Marvell expand its AI product offerings and strengthen its place in the AI hardware market. Celestial AI, founded in 2019, has already raised over $100 million from investors like Microsoft and Nvidia.

Marvell shares jump after buying AI startup Celestial AI

Marvell Technology shares jumped 9% on Wednesday morning after announcing a major acquisition. The company will buy the semiconductor startup Celestial AI for $3.25 billion. This deal shows Marvell is serious about expanding into next-generation AI infrastructure. Marvell aims to boost its momentum in the AI market after facing strong competition this past year.

Microsoft stock falls amid AI sales goal reports

Microsoft stock fell after a report claimed its AI product sales were missing growth targets. The Information stated that many sales teams for the Azure Foundry product did not meet their goals last fiscal year. Microsoft, however, denied lowering sales quotas or targets for its AI products. A spokesperson said the report confused growth targets with sales quotas. Despite the AI boom, traditional businesses are not adopting these tools as quickly as expected.

Microsoft shares drop despite denying AI sales target cuts

Microsoft shares dropped over 1.7% on Wednesday after a report suggested the company lowered its AI product sales growth targets. The Information claimed that many salespeople in the Azure unit missed their 50% growth target for an AI tool. Microsoft denied the report, stating it had not lowered sales quotas and that the report misunderstood how sales organizations work. The company's market value is $3.5 trillion, and its shares are up 15% this year, largely due to its Azure business.

Microsoft stock slips as clients hesitate on AI tools

Microsoft Corp. (MSFT) shares are falling due to reports that the company lowered its AI sales targets. Clients are reportedly hesitant to purchase the new AI tools. Microsoft CEO Satya Nadella believes fully autonomous AI is "far-fetched" and that humans must remain central to AI operations. He also noted the AI industry strains the electric grid and needs to prove its broad economic value. Despite strong earnings with $77.7 billion in revenue and Azure revenue up 40%, the stock still slipped.

Wolfe Research sees signs of AI fatigue in stocks

Wolfe Research analysts believe there are signs of "AI fatigue" in the stock market. While Nvidia's strong sales recently eased some worries about an AI bubble, other major AI stocks are struggling. Wolfe's basket of AI stocks has performed worse than the S&P 500 since Nvidia's earnings and over the last three months. Although Alphabet shares have risen, companies like Microsoft, Amazon, and Meta have seen declines. Power stocks, which should benefit from AI data centers, are also not showing strong leadership.

Green computing investment could unlock Africa's AI future

Investing in "green" computing can unlock up to $1.5 trillion in economic value for Africa by 2030. Africa has strong AI talent, but it lacks affordable GPUs, reliable power, and coordinated investment. This "compute paradox" means new data centers might sit empty despite growing demand for AI solutions like crop disease detection. Companies like IXAfrica, Microsoft, G42, and Cassava Technologies are already building infrastructure and deploying GPUs. African-led companies like Zindi and Axum are also making high-performance computing more accessible.

Marvell acquires Celestial AI for 1.1 billion dollars

Marvell Technology (MRVL) announced on Tuesday that it will acquire Celestial AI for $1.1 billion in cash and stock. Celestial AI is a leader in optical interconnect technology, which is crucial for high-performance computing and AI. This acquisition will boost Marvell's growth in the AI market and expand its product offerings. The deal is expected to finalize in the second half of fiscal year 2025. Separately, CrowdStrike and American Eagle Outfitters also reported better-than-expected earnings.

Microsoft stock falls after AI sales target report

Microsoft Corp. (MSFT) stock fell on Wednesday following a report that it revised AI sales targets due to missed goals. The Information claimed that many Azure cloud division employees did not meet their Foundry sales growth projections. Microsoft, however, denied reducing sales goals, stating the report was inaccurate. Despite this, Microsoft remains committed to AI, investing a record $35 billion in infrastructure this year. Its Azure and cloud services revenue still climbed 40% year-on-year in the first quarter of fiscal 2026.

Microsoft stock pressured by reported AI sales cuts

Microsoft (MSFT) stock is facing pressure after The Information reported that the company lowered some of its artificial intelligence sales quotas. This news suggests that Microsoft might be adjusting its expectations for AI product demand. Yahoo Finance Tech Editor Dan Howley is examining the reasons behind these reported cuts.

Dell seen as strong player in AI market

Dell is considered a good company for investors interested in the artificial intelligence market. Michael Dell, the founder and CEO, is donating $6 billion to fund "Trump accounts." Experts like Kenny Polcari, Allie Canal, and James Butterfill are discussing Dell's role in the future of AI. They believe the company has a strong position in the growing AI trade.

Sources

• Microsoft Stock Slips On Report Customers Resisting AI Products
• Microsoft drops after report that it lowered AI sales quotas in the face of lower-than-expected demand
• Microsoft slides amid report it's cutting software sales quotas tied to AI (MSFT:NASDAQ)
• Marvell shares climb on report of talks to buy AI startup Celestial AI
• Marvell shares jump as chipmaker bolsters AI ambitions with Celestial deal
• Microsoft stock sinks on report AI product sales are missing growth goals
• Microsoft Shares Drop After Reportedly Lowering Expectations For AI Product Demand
• Microsoft Stock Slips as "Hesitant" Clients Reportedly Force Cuts to AI Sales Goals
• Wolfe says it is "seeing some real signs of AI fatigue" in stocks. Here’s why. By Investing.com
• Investment in 'green' computing can unlock $1.5t in Africa
• Earnings live: Marvell announces Celestial AI acquisition, CrowdStrike stock edges higher, American Eagle pops
• Microsoft Stock Falls After Software Giant Reportedly Revises AI Sales Targets As Growth Falls Short Of Expectation
• Microsoft stock falls on reported AI sales quota cut
• Dell is a good 'way to play' the AI trade