Microsoft Taps Constellation For 20-Year Carbon-Free Power – 3,400 Jobs Coming To Pennsylvania
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 20 2024
0mins
Should l Buy MSFT?
Source: Benzinga
Power Purchase Agreement: Constellation Energy Corporation has signed a 20-year power purchase agreement with Microsoft to launch the Crane Clean Energy Center and restart the Three Mile Island Unit 1, aiming to provide carbon-free energy for Microsoft's data centers.
Economic Impact: The project is expected to create 3,400 jobs in Pennsylvania and ensure sufficient baseload power for the state while supporting both companies' sustainability goals.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MSFT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.140
Low
500.00
Averages
631.36
High
678.00
Current: 401.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OpenAI's ChatGPT Sees Over 10% Monthly Growth
- Significant User Growth: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT is experiencing over 10% monthly growth, with approximately 800 million weekly active users, demonstrating strong appeal despite fierce competition in the market.
- Product Update Plans: Altman also mentioned that OpenAI plans to release an updated chat model this week, and its AI coding tool Codex has grown by about 50% in the past week, which will further enhance its product competitiveness.
- Ad Testing Launch: OpenAI is set to begin testing ads in ChatGPT today, facing criticism from competitor Anthropic; Altman emphasized the goal of making AI accessible to a broad user base that cannot afford subscription fees.
- Market Valuation Surge: OpenAI's valuation is expected to soar above $800 billion, while Anthropic's latest funding round could elevate its valuation to $350 billion, indicating strong growth potential for both companies in the AI sector.
See More
Key Highlights from Monday's Investing Club Meeting
- Tech Stock Rally: The S&P 500 rose on Monday, buoyed by strong performances in big tech, with club holdings Nvidia and Broadcom climbing over 3%, indicating sustained market confidence in AI investments.
- Broadcom Rating Upgrade: The club upgraded Broadcom to a buy-equivalent 1 rating on Friday, reflecting optimism about its growth potential as a major beneficiary of increased AI spending, especially with Alphabet and Meta planning to boost their AI budgets.
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing concerns that CEO Satya Nadella has lost the AI narrative; however, the club maintains a long-term positive outlook on Microsoft shares, indicating confidence in its future performance.
- Corning Stock Surge: Corning's stock jumped 7% to record highs after being featured as an
See More
OpenAI Regains Growth Momentum Amid Competitive Pressure
- Monthly Growth Recovery: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has rebounded to over 10%, indicating the company's ability to maintain growth under competitive pressure, which boosts investor confidence.
- Surge in Codex Usage: Following the release of the new GPT-5.3-Codex model and a standalone Mac app, Codex usage surged by approximately 50% in the past week, enhancing the product's market appeal and potentially driving future revenue growth.
- Advertising Strategy Adjustment: In response to competitor Anthropic's critical ads, Altman labeled them as
See More
Anthropic's Claude Surpasses OpenAI in Super Bowl Ads
- Ad Performance Comparison: According to EDO CEO Kevin Krim, Anthropic's two ads generated more consumer searches and website visits than OpenAI's three ads, indicating a shift in how AI companies are competing for mainstream users.
- Surprise Winner: The domain ai.com, purchased by Crypto.com founder Kris Marszalek, crashed shortly after its provocative ad aired, demonstrating the effectiveness of its strategy in driving consumer curiosity and engagement, making it the unexpected winner of the advertising battle.
- Strategic Differences: Krim noted that while Anthropic targeted consumers directly, OpenAI focused more on enterprise and programmer audiences, suggesting that this strategic divergence may have influenced their respective performances in the Super Bowl ads.
- Advertising Industry Trends: Approximately 16 companies, predominantly from the tech sector, purchased ads during this year's Super Bowl, with Krim stating that the competition among ads was more intense than the game itself, highlighting the innovation and changes brands are making to capture consumer attention.
See More
Four Tech Giants to Spend $625 Billion on AI Infrastructure
- Massive Investment Plans: The four tech giants are projected to collectively spend $625 billion on new data centers and AI infrastructure by 2026, with Alphabet at $185 billion, Amazon at $200 billion, Meta at $135 billion, and Microsoft at $105 billion, indicating fierce competition in the AI market.
- Market Reaction: Despite the large investment figures, analysts are skeptical about the positive impact on profits, as evidenced by Microsoft's stock plummeting 11% in a single day last week, reflecting concerns over slowing growth in its cloud computing segment.
- Investor Opportunities: The Global X Data Center and Digital Infrastructure ETF (DTCR) is seen as a great way for investors to capitalize on the rapidly growing AI spending trend, currently managing $1.1 billion in assets and yielding a 13.3% return in 2026.
- Optimistic Market Outlook: Grand View Research estimates that the data center construction market will grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, highlighting the accelerating trend in AI infrastructure development.
See More
AI Giants Ramp Up Capital Expenditure Plans for 2026
- Surge in Capital Expenditure: The four major tech giants are projected to collectively invest $625 billion in new data centers and AI infrastructure by 2026, although the uncertain returns may negatively impact shareholder profits.
- Individual Company Struggles: Microsoft's quarterly results revealed slowing revenue growth from its Azure cloud computing unit, leading to an 11% drop in its stock price in a single day, marking the largest decline since March 2020, reflecting market concerns over its spending plans.
- Data Center Market Outlook: According to Grand View Research, the data center construction market is expected to grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, indicating strong demand for infrastructure investment.
- Investment Opportunity Analysis: Despite fierce competition among the four giants for AI customers, investing in the Global X Data Center and Digital Infrastructure ETF (DTCR) may be an effective way to capitalize on this rapidly growing trend, as the ETF currently manages $1.1 billion in assets and has delivered a 41.3% return over the past 52 weeks.
See More
OpenAI's ChatGPT Sees Over 10% Monthly Growth
- Significant User Growth: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT is experiencing over 10% monthly growth, with approximately 800 million weekly active users, demonstrating strong appeal despite fierce competition in the market.
- Product Update Plans: Altman also mentioned that OpenAI plans to release an updated chat model this week, and its AI coding tool Codex has grown by about 50% in the past week, which will further enhance its product competitiveness.
- Ad Testing Launch: OpenAI is set to begin testing ads in ChatGPT today, facing criticism from competitor Anthropic; Altman emphasized the goal of making AI accessible to a broad user base that cannot afford subscription fees.
- Market Valuation Surge: OpenAI's valuation is expected to soar above $800 billion, while Anthropic's latest funding round could elevate its valuation to $350 billion, indicating strong growth potential for both companies in the AI sector.
See More
Key Highlights from Monday's Investing Club Meeting
- Tech Stock Rally: The S&P 500 rose on Monday, buoyed by strong performances in big tech, with club holdings Nvidia and Broadcom climbing over 3%, indicating sustained market confidence in AI investments.
- Broadcom Rating Upgrade: The club upgraded Broadcom to a buy-equivalent 1 rating on Friday, reflecting optimism about its growth potential as a major beneficiary of increased AI spending, especially with Alphabet and Meta planning to boost their AI budgets.
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing concerns that CEO Satya Nadella has lost the AI narrative; however, the club maintains a long-term positive outlook on Microsoft shares, indicating confidence in its future performance.
- Corning Stock Surge: Corning's stock jumped 7% to record highs after being featured as an
See More
OpenAI Regains Growth Momentum Amid Competitive Pressure
- Monthly Growth Recovery: OpenAI CEO Sam Altman revealed in an internal message that ChatGPT's monthly growth rate has rebounded to over 10%, indicating the company's ability to maintain growth under competitive pressure, which boosts investor confidence.
- Surge in Codex Usage: Following the release of the new GPT-5.3-Codex model and a standalone Mac app, Codex usage surged by approximately 50% in the past week, enhancing the product's market appeal and potentially driving future revenue growth.
- Advertising Strategy Adjustment: In response to competitor Anthropic's critical ads, Altman labeled them as
See More
Anthropic's Claude Surpasses OpenAI in Super Bowl Ads
- Ad Performance Comparison: According to EDO CEO Kevin Krim, Anthropic's two ads generated more consumer searches and website visits than OpenAI's three ads, indicating a shift in how AI companies are competing for mainstream users.
- Surprise Winner: The domain ai.com, purchased by Crypto.com founder Kris Marszalek, crashed shortly after its provocative ad aired, demonstrating the effectiveness of its strategy in driving consumer curiosity and engagement, making it the unexpected winner of the advertising battle.
- Strategic Differences: Krim noted that while Anthropic targeted consumers directly, OpenAI focused more on enterprise and programmer audiences, suggesting that this strategic divergence may have influenced their respective performances in the Super Bowl ads.
- Advertising Industry Trends: Approximately 16 companies, predominantly from the tech sector, purchased ads during this year's Super Bowl, with Krim stating that the competition among ads was more intense than the game itself, highlighting the innovation and changes brands are making to capture consumer attention.
See More
Four Tech Giants to Spend $625 Billion on AI Infrastructure
- Massive Investment Plans: The four tech giants are projected to collectively spend $625 billion on new data centers and AI infrastructure by 2026, with Alphabet at $185 billion, Amazon at $200 billion, Meta at $135 billion, and Microsoft at $105 billion, indicating fierce competition in the AI market.
- Market Reaction: Despite the large investment figures, analysts are skeptical about the positive impact on profits, as evidenced by Microsoft's stock plummeting 11% in a single day last week, reflecting concerns over slowing growth in its cloud computing segment.
- Investor Opportunities: The Global X Data Center and Digital Infrastructure ETF (DTCR) is seen as a great way for investors to capitalize on the rapidly growing AI spending trend, currently managing $1.1 billion in assets and yielding a 13.3% return in 2026.
- Optimistic Market Outlook: Grand View Research estimates that the data center construction market will grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, highlighting the accelerating trend in AI infrastructure development.
See More
AI Giants Ramp Up Capital Expenditure Plans for 2026
- Surge in Capital Expenditure: The four major tech giants are projected to collectively invest $625 billion in new data centers and AI infrastructure by 2026, although the uncertain returns may negatively impact shareholder profits.
- Individual Company Struggles: Microsoft's quarterly results revealed slowing revenue growth from its Azure cloud computing unit, leading to an 11% drop in its stock price in a single day, marking the largest decline since March 2020, reflecting market concerns over its spending plans.
- Data Center Market Outlook: According to Grand View Research, the data center construction market is expected to grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%, indicating strong demand for infrastructure investment.
- Investment Opportunity Analysis: Despite fierce competition among the four giants for AI customers, investing in the Global X Data Center and Digital Infrastructure ETF (DTCR) may be an effective way to capitalize on this rapidly growing trend, as the ETF currently manages $1.1 billion in assets and has delivered a 41.3% return over the past 52 weeks.
See More
