Microsoft Explores Superconducting Power to Boost AI Data Centers

Microsoft Corporation (NASDAQ:MSFT) is among the most profitable mega cap stocks to buy. On February 10, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) is considering utilizing superconducting power lines in its data centers. This would mean expansion of its huge U.S. build-out of the server warehouses by enhancing energy efficiency, the company said. This plan to develop giant data centers across the U.S. has been slowed by the national aging power system and electricity supply limitations.

“The technology helps us scale power density without expanding our physical footprint,” stated Husam Alissa, an executive at Microsoft’s CO+I CTO Office. “It can also help us reduce the size of power transmission infrastructure and lower community impact.”

Earlier on February 3, Piper Sandler maintained an Overweight rating and a $600 price target on Microsoft Corporation (NASDAQ:MSFT). The firm remains bullish on the company, given a supportive backdrop for hyperscalers and select vertical software companies. That said, Piper Sandler described the company as “perhaps the best pure-play on AI adoption today,” placing it among the firm’s top picks. The firm advises buying the stock following its post-earnings pullback.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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