Nvidia shares fall 1% as Microsoft develops new AI chip

Nvidia shares (NASDAQ:NVDA) fell 1% to $226.55 after Microsoft (NASDAQ:MSFT) unveiled its third-generation AI chip, Maia 300, on Monday. Microsoft says the chip delivers 40% more tokens per megawatt than leading GPU systems, and its 96-accelerator configuration offers up to seven times the rack-scale throughput of its predecessor, Maia 200. Production deployment is planned for 2027, scaling to multi-gigawatt levels as Microsoft's primary system for AI inference, as cloud providers seek greater control over infrastructure costs. Built on a chiplet architecture using TSMC's advanced manufacturing, the chip poses a potential challenge to Nvidia and AMD. Nvidia's position depends on whether AI computing demand keeps growing enough to offset customers building their own alternatives, while Microsoft's rollout is more than a year away.

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