Microsoft stock rises after Nvidia unveils N1X AI PC chip

Microsoft shares rose about 2% on Monday after Nvidia unveiled the N1X AI PC processor co-developed with Microsoft at the Computex conference in Taiwan. Nvidia said the N1X will be integrated into its RTX Spark superchip and included in new Windows-based personal computers due to ship this fall from Microsoft and major vendors including Dell, HP, ASUS, Lenovo and MSI.

Nvidia CEO Jensen Huang introduced the N1X during his keynote, describing the processor as part of a “re-engineered, reinvented line of PCs” and saying, “Microsoft and Nvidia are going to reinvent the PC.” He said AI agents will run across the new devices.

The announcement highlighted a hardware partnership between Microsoft and Nvidia as device makers add more on-device and hybrid AI processing. Microsoft’s shares rose during trading after the presentation.

Wells Fargo raised its price target on Microsoft to $650 from $625 while maintaining an Overweight rating. Analyst Michael Turrin wrote that Microsoft is better positioned at the software layer and that investments in software and model development should drive adoption over time.

Citizens JMP Securities initiated coverage of Microsoft with a Market Outperform rating and a $550 price target. The firm estimated Microsoft’s total addressable market could grow from about $1.8 trillion in 2025 to $5.1 trillion by 2030, citing AI software, cloud infrastructure, cybersecurity and enterprise applications. The firm noted concerns about Microsoft’s infrastructure spending and use of third-party models, and pointed to Microsoft’s enterprise customer base, Azure platform, security products and partner network.

Microsoft is expected to provide additional AI updates at its upcoming Build developer conference. The company plans to introduce a coding-focused model to supplement GitHub Copilot and to announce new reasoning, transcription and image-generation models. Analysts said more detail on model strategy and partnerships could affect near-term investor sentiment.

Nvidia framed the N1X and RTX Spark as part of efforts to move some inference and agent functionality closer to user devices while continuing to rely on cloud services. New systems using the chips are scheduled to arrive this fall from Microsoft and the listed PC manufacturers.