Nvidia Stock Price Dips After Microsoft Reveals New AI Chip

Nvidia (NVDA) stock price has taken a hit, closing 1.29% (2.96 points) lower on Monday, October 12, 2026. The stock has fallen by an additional 0.87% (1.97 points) in the after-market hours. Nvidia’s (NVDA) latest stock price dip comes after Microsoft (MSFT) revealed its latest AI chip, the Azure Maia 300. The move aims to reduce Microsoft’s reliance on Nvidia (NVDA) and Advanced Micro Devices, Inc (AMD).

Nvidia Stock Price Dip: Will Microsoft’s AI Chip Further Pull NVDA Down?

Apart from Nvidia (NVDA), AMD shares prices have also taken a hit. AMD stock closed 2.28% lower on Monday, and an additional 1.46% in the after-market hours. Microsoft (MSFT), however, saw a gain, closing 1.14% higher on Monday and a 0.18% gain in the after-market hours.

The price movements are most likely due to Microsoft’s latest AI chip revelation. The company was so far dependent on Nvidia and AMD chips. With its Azure Maia 300 processor, Microsoft could potentially become self-reliant. Such a move could be a big blow to Nvidia and AMD.

Microsoft further said that Maia 300 provides 40% more tokens per megawatt than other GPU-based systems. More tokens per megawatt will lead to a more efficient AI rack. The Maia 200 chip currently powers its Microsoft production workloads, including Microsoft 365 Copilot. It also powers OpenAI models, Microsoft’s MAI models, and several other open-source models. The growing list of models under Microsoft’s belt could post a threat to Nvidia’s dominance. Other companies could also follow Microsoft’s path and reduce their reliance on the current industry giants.

Nonetheless, Nvidia and AMD continue to play a major role in the data center and AI chip business. Wall Street remains bullish on both companies, expecting high revenues and earnings per share.