Microsoft (MSFT) has launched its Maia 200 next-gen AI chip, a move that could propel it ahead of tech rivals Nvidia, Alphabet, and Amazon. While MSFT moved higher following the announcement, as expected, Nvidia shares are also up in the last 48 hours. Some analysts view the new MSFT chip as healthy competition for Nvidia, which could actually help NVDA stock instead of harming it.

Indeed, Microsoft is looking to end its reliance on Nvidia’s AI chips by developing its own. The move follows Alphabet (GOOGL), Meta, and Amazon (AMZN), as Nvidia faces new pressure in the AI sector. However, the latter remains at the forefront of the sector, especially overseas. News on the China chip front has been moving NVDA stock higher.

On Friday, Bloomberg reported that Beijing has told Chinese companies they can prepare orders to buy Nvidia’s H200 chip. The move follows an earlier push by the Chinese government for companies to use local chips. Samsung is also close to securing certification from Nvidia (NVDA) for its latest high-bandwidth memory chip, which is another strong partnership for the latter that is expected to spur its stock higher.

NVIDIA is seen as a strong value play with projected 49% earnings growth through 2027, while partnerships in AI and significant upcoming earnings reports are crucial for investor sentiment. The semiconductor sector is shifting focus towards compute engines like Nvidia, enhancing its market position. At press time, NVDA is trading near the top of its 52-week range and above its 200-day simple moving average. Furthermore, alysts maintain a bullish outlook on Nvidia with price targets ranging from $220 to $320.