UK regulator proposes strategic market status for Microsoft

Microsoft (MSFT) plans to expand its custom Maia chips in Azure data centers, reducing reliance on Nvidia (NVDA) GPUs. CEO Satya Nadella stated Maia will be the primary inference system for Microsoft's products. Marvell Technology (MRVL), Microsoft's chip partner, could see significant revenue growth. Microsoft's $175B data center spending may benefit Marvell, which aims to grow revenue tenfold in five years.

UK's CMA proposed designating Microsoft with 'strategic market status' in business software, citing its strong position and bundling practices. Microsoft disputes the findings, stating its products are open and interoperable. The CMA will gather views and decide by February. If approved, Microsoft would be the third company under Britain's digital market powers. Google and Apple were designated in 2025.

The UK's Competition and Markets Authority proposed designating Microsoft as having 'strategic market status' in business software, potentially leading to regulatory interventions. The review covers products like Word, Excel, and Teams, with a final decision expected next year.

Microsoft President Brad Smith warned that US restrictions on green cards for skilled foreign workers could harm the tech sector. He denied allegations of H-1B visa abuse and emphasized the company's US hiring. The Trump administration suspended the PERM program for Microsoft and other IT firms, halting new and pending applications.

The Trump administration suspended a green card program for foreign skilled workers at Microsoft, Adobe, and six other tech firms, citing $20B in visa fraud. The move targets the PERM program, which transitions H-1B visas to green cards, and J-1 visas for universities. Tech leaders and politicians have historically supported skilled immigration, but critics argue it undercuts American wages and jobs. Microsoft submitted 6,000 H-1B applications last fiscal year, 80% for existing employees.

Microsoft (MSFT) plans to invest $10B in the Middle East by 2030, including $400M for regional connectivity, following talks with the U.S. Embassy in Saudi Arabia. The company is seen as modestly undervalued by 9.8% with a GF Value of $593.10. MSFT has a perfect GF Score of 100/100, reflecting strong financial health and growth prospects.