Microsoft Corporation (MSFT) Going Deeper in Hardware/Chip Offerings

Microsoft Corporation (NASDAQ:MSFT) has been substantially ramping up its efforts with hardware and chip projects. The company has a number of different projects in the works that are each aimed at key segments of the tech giants business.

The Street explains what Microsoft has been up to.

Over the last few weeks along, there have been a half-dozen or so announcements and reports about Microsoft hardware and chip efforts. There isn’t a single, overarching reason for all this activity. Rather, the motivations behind Microsoft’s current hardware and chip efforts broadly fall into one of three categories:

1.Strengthening large hardware franchises that — directly or indirectly — are facing tougher competition.
2.Commercializing new platforms that Microsoft wants to at least partly monetize via software and/or services.
3.Making Microsoft’s cloud data centers more cost and power-efficient.

Among the projects that the company has recently announced are in the works is a next-generation Xbox console that’s slated to be launched in 2020. Also on tap are a set of low-cost Surface tablets that could be unveiled as soon as next month.

If that’s not enough, the tech behemoth also has ambitious projects in the works with AR/AI, as well as an initiative aimed at creating self-sufficient data centers.

Microsoft Corporation shares fell $0.57 (-0.57%) in premarket trading Monday. Year-to-date, MSFT has gained 18.12%, versus a 4.26% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 66 stocks in the Software – Application category.