This Analyst Raises Price Targets For Microsoft And This AI Infrastructure Stock

Nscale, an AI-focused data center company, attributes its 1,000x contract growth to Microsoft and Anthropic, which account for 85% of its $103B contract value. Microsoft has $43.8B in agreements, while Anthropic has a $44.6B deal with performance milestones. Nscale is not profitable, with a $1.02B loss on $140.6M sales in H1. The company plans a NY listing valued at up to $35B. Nvidia is a major shareholder and investor, but supply chain risks remain.

Meta Platforms' stock rose 7% to $712.56 after Wells Fargo raised its price target to $796, citing positive early traction for its Muse assistant. The increase comes ahead of Meta's Connect developer conference, where usage metrics for Muse will be a focus. Alphabet and Microsoft also saw gains, but Meta's rise was more pronounced. Investors await Connect for further validation of Wells Fargo's target.

Unsealed court documents in The New York Times' lawsuit against OpenAI and Microsoft reveal executives privately discussed AI training practices as theft. Internal communications suggest the companies scraped paywalled content, built large training datasets, and removed copyright notices. Microsoft's director called the scraping the largest theft of labor in history, while its CEO testified paywalled content should be licensed.

Microsoft's Rajiv Kumar predicts India will transition from digital to AI public infrastructure in 5 years, building on successes like Aadhaar and UPI. Microsoft has invested $20.5B in India, focusing on infrastructure, skilling, and AI. The new Hyderabad data center is one of Microsoft's largest, supporting Azure services and future scalability.

Nscale revealed that 85% of its $103B contracts are with Microsoft (MSFT) and Anthropic, including $43.8B with MSFT and $44.6B with Anthropic. The company acknowledged concentration risk and reported a net loss of $1.02B on $140.6M sales for H1. Nvidia (NVDA) is a major shareholder and supplier. Nscale aims for a $35B valuation in its upcoming IPO.

Microsoft opened its fourth cloud region in India, in Hyderabad, as part of a $20.5B investment in AI and cloud infrastructure. The facility supports advanced AI workloads and serves as a hub for Asia. Clients include Adani Group, Bajaj Finserv, HDFC Bank, and PB Pay. Microsoft aims to grow India's data-center capacity from 2GW to 12-14GW by 2035.