# Microsoft's AI Chips Outpace Nvidia

> Microsoft's new AI chip generation doesn't threaten Nvidia's dominance in chip sales.
- Title: Microsoft's AI Chips Outpace Nvidia · The Motley Fool
- Summary: Microsoft's new AI chip generation doesn't threaten Nvidia's dominance in chip sales. Microsoft's third AI chip generation won't hurt Nvidia's stock as it…
- Keywords: microsoft, nvidia, ai chips, maia 300, hyperscale customers, fiscal q3 2027, fiscal q4 2026, fiscal 2028, finance, money, Microsoft's, Chips
- Source: The Motley Fool — https://fool.com/investing/2026/10/12/microsoft-now-has-3-generations-of-its-own-ai-chips-nvidia-is-still-the-chip-stock-to-buy
- Author: Daniel Sparks
- Published: 2026-10-13T01:43:02+00:00
- Read time: 1 min
- Topics: microsoft, nvidia, ai chips, maia 300, hyperscale customers, fiscal q3 2027, fiscal q4 2026, fiscal 2028, finance, money
## Microsoft launches Maia 300
Microsoft announced Maia 300, its third generation AI chip, to ramp up production starting in 2027.
## Nvidia's revenue grows
Nvidia reported $96.2 billion in fiscal second quarter of 2027, up 106% year over year.
## Microsoft buys Nvidia chips
Microsoft still purchases Nvidia's chips despite building its own AI chip system.
## Maia 300's performance
Microsoft claims Maia 300 will generate 40% more tokens per megawatt than top Nvidia systems.
## Nvidia's growth continues
Nvidia's hyperscale customers spent $48.7 billion, more than doubling their spending on AI chips.
## Nvidia's stock price
Nvidia shares trade near $226, about 14 times analysts' expected earnings for fiscal 2028.
## Key takeaway

Microsoft's third AI chip generation won't hurt Nvidia's stock as it continues strong growth.