New York, Jan 26, 2026, 16:54 ET — After-hours.
- Microsoft shares rose about 0.9% in late trading after the company unveiled its second-generation Maia AI chip and new developer tools.
- The stock is being watched as “mega-cap” tech earnings and a Federal Reserve policy decision land in the next two sessions.
- Investors want clearer signs that heavy AI spending is turning into revenue without eroding margins.
Microsoft shares were up about 0.9% at $470.28 in late trading on Monday, after the company rolled out a fresh in-house artificial intelligence chip and new software aimed at loosening Nvidia’s grip on developers. (Investing)
The move matters now because Microsoft reports quarterly results on Wednesday, with investors primed to judge whether AI demand is turning into measurable payoffs, not just bigger capital bills. Guidance is likely to set the tone for the rest of the week. (Reuters)
Microsoft’s announcement centered on “Maia 200,” the second generation of its Maia AI chip, which the company said comes online this week at a data center in Iowa, with a second site planned in Arizona. The effort puts Microsoft alongside other cloud giants building their own chips, even as Nvidia remains the dominant supplier. (Investing)
Alongside the hardware, Microsoft said it will offer a package of tools for programming the chip, including Triton, an open-source tool with major contributions from OpenAI. The goal is to narrow the software gap with Nvidia’s CUDA, the programming platform that many developers use to build and run AI models. (Investing)
The AI chip push is also a direct shot across the bows at peers and partners. Reuters reported that Google has drawn interest from large AI buyers, including Meta, as companies look for alternatives that work well with their software stacks. (Investing)
In the broader market, Wall Street stocks finished higher on Monday as investors positioned for a run of “mega-cap” earnings and the Fed’s rate decision. “You’re seeing communications and technology are trading well today in advance of the earnings from a lot of the large companies,” Chris Zaccarelli, chief investment officer at Northlight Asset Management, said. (Reuters)
For Microsoft, the next hard marker is its fiscal 2026 second-quarter report after the market close on Jan. 28, followed by a conference call featuring CEO Satya Nadella and CFO Amy Hood. (Source)
Some analysts expect Azure to carry the story again. Dan Ives at Wedbush wrote that, “We expect to see another quarter of robust results,” while flagging AI-related spending as a key point to watch in the release. (Benzinga)
Separately, Microsoft has been dealing with fallout from its first Windows 11 update of 2026, including emergency fixes for shutdown issues and problems tied to cloud storage apps, according to The Verge. Microsoft’s support note for a Jan. 24 out-of-band update lists fixes for apps becoming unresponsive when opening or saving files to services such as OneDrive and Dropbox. (The Verge)
But the risk for bulls is simple: a chip demo and developer tools do not automatically translate into near-term earnings power. Investors have been sensitive to high tech valuations and to any sign that AI costs are rising faster than revenue, and Reuters noted even a modest stumble in guidance could prompt a rethink of the trade. (Reuters)
Next up: the Fed’s policy statement on Wednesday and Microsoft’s earnings report after the close the same day, when investors will be looking for detail on Azure growth, AI demand, and spending plans. (Reuters)
