Microsoft Joins Consortium for Undersea Cable Linking India and Singapore
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49 minutes ago
0mins
Source: seekingalpha
- Undersea Cable Project: Microsoft has joined a consortium led by Singapore's Lightstorm to construct a 3,600-km undersea cable linking India with Malaysia and Singapore, aimed at supporting AI, cloud, and hyperscale workloads, expected to be operational by Q4 2029.
- Network Expansion: The new cable will expand Lightstorm's AI and cloud zones in India from 19 to 29, significantly enhancing its competitive position in the rapidly growing cloud services market and addressing increasing data transmission demands.
- IPO Plans: Lightstorm plans to launch an IPO in India in mid-2027, seeking a valuation of up to $1.5 billion, which will provide funding for future expansions and technological investments.
- Partnerships: The project includes notable partners such as Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan's NEC, highlighting the industry's strong focus on infrastructure investment and further driving the development of the regional digital economy.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 373.020
Low
500.00
Averages
631.36
High
678.00
Current: 373.020
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft Joins Consortium for Undersea Cable Linking India and Singapore
- Undersea Cable Project: Microsoft has joined a consortium led by Singapore's Lightstorm to construct a 3,600-km undersea cable linking India with Malaysia and Singapore, aimed at supporting AI, cloud, and hyperscale workloads, expected to be operational by Q4 2029.
- Network Expansion: The new cable will expand Lightstorm's AI and cloud zones in India from 19 to 29, significantly enhancing its competitive position in the rapidly growing cloud services market and addressing increasing data transmission demands.
- IPO Plans: Lightstorm plans to launch an IPO in India in mid-2027, seeking a valuation of up to $1.5 billion, which will provide funding for future expansions and technological investments.
- Partnerships: The project includes notable partners such as Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan's NEC, highlighting the industry's strong focus on infrastructure investment and further driving the development of the regional digital economy.
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- Increased Market Competition: This initiative will place Meta in direct competition with AI infrastructure providers like Nebius and CoreWeave, as well as hyperscalers such as Microsoft and Google Cloud; despite the fierce competition, Meta's resources and technological prowess position it well in this rapidly expanding market.
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- Competitive Landscape Analysis: This move will place Meta in direct competition with AI infrastructure providers like Nebius and CoreWeave, as well as hyperscalers like Microsoft and Google Cloud; while the challenges are significant, Meta has the potential to succeed.
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Microsoft Joins Consortium for Undersea Cable Linking India and Singapore
- Undersea Cable Project: Microsoft has joined a consortium led by Singapore's Lightstorm to construct a 3,600-km undersea cable linking India with Malaysia and Singapore, aimed at supporting AI, cloud, and hyperscale workloads, expected to be operational by Q4 2029.
- Network Expansion: The new cable will expand Lightstorm's AI and cloud zones in India from 19 to 29, significantly enhancing its competitive position in the rapidly growing cloud services market and addressing increasing data transmission demands.
- IPO Plans: Lightstorm plans to launch an IPO in India in mid-2027, seeking a valuation of up to $1.5 billion, which will provide funding for future expansions and technological investments.
- Partnerships: The project includes notable partners such as Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan's NEC, highlighting the industry's strong focus on infrastructure investment and further driving the development of the regional digital economy.
See More
Meta Plans to Sell Excess Computing Capacity to Offset AI Spending
- AI Investment Recovery Plan: Meta is planning to sell its excess computing capacity to recoup part of its staggering $145 billion AI spending, a move that not only alleviates financial pressure but also accelerates the profitability of its AI business.
- Increased Market Competition: This initiative will place Meta in direct competition with AI infrastructure providers like Nebius and CoreWeave, as well as hyperscalers such as Microsoft and Google Cloud; despite the fierce competition, Meta's resources and technological prowess position it well in this rapidly expanding market.
- Ongoing Data Center Operations: Meta will continue to operate its vast data centers while renting access to its AI models to developers, which not only creates new revenue streams for the company but also enhances its market position in the AI sector.
- Positive Stock Reaction: Following this announcement, Meta's stock surged by 8.88% to $50.05, significantly boosting market expectations for its future profitability and reflecting investor confidence in its AI strategy.
See More
Zuckerberg's Plan to Boost Revenue from Meta's Data Centers
- AI Investment Recovery Plan: Zuckerberg's strategy to sell Meta's excess computing capacity aims to recoup part of the $145 billion AI investment, which is expected to accelerate revenue growth and improve cash flow.
- New Business Model Exploration: Meta is considering launching a new business to rent its AI computing resources and models to developers, which could enhance the company's competitiveness in the AI infrastructure market and attract more developers to its platform.
- Competitive Landscape Analysis: This move will place Meta in direct competition with AI infrastructure providers like Nebius and CoreWeave, as well as hyperscalers like Microsoft and Google Cloud; while the challenges are significant, Meta has the potential to succeed.
- Positive Market Reaction: Following the announcement, Meta's shares spiked on Wednesday, indicating increased investor confidence in the company's future profitability and reflecting market recognition of its AI strategy.
See More
Meta's Cloud Business Could Boost Stock Price
- Cloud Business Outlook: Analysts suggest that Meta's plans to enter the cloud computing market could provide a clearer return on investment for its $141 billion capital expenditure in 2026, alleviating investor concerns about its elevated investment levels.
- Market Sentiment Shift: Following the cloud business announcement, Meta's stock surged 8.8% on Wednesday, marking its best performance in nearly six months, although it remains down 7% year-to-date, indicating a shift in investor optimism about the future.
- Competitive Landscape Change: Meta's cloud infrastructure plans may rival industry leaders like Amazon AWS, Microsoft Azure, and Google Cloud, with analysts noting that this could support Meta's long-term AI strategy by enhancing resource utilization and cash flow.
- Investor Confidence Boost: On Stocktwits, over 40% of respondents indicated they would increase their positions in META stock following the cloud business news, reflecting market confidence in Meta's future developments, despite analysts remaining cautious about the scale and scope of the cloud venture.
See More
Meta Buzz Drives Stock Declines for SpaceX, Micron, and AI Stocks
- Market Volatility: Stocks for SpaceX, Micron, and various AI companies fell due to the buzz surrounding Meta, indicating the market's sensitivity to tech stocks and fluctuations in investor sentiment, which could lead to short-term capital outflows.
- Tesla Deliveries Approaching: With Tesla's delivery numbers set to be released soon, market expectations could influence stock price movements; if delivery figures exceed expectations, it may bolster investor confidence and potentially drive a rebound in stock prices.
- Employment Report Impact: The upcoming June jobs report is likely to have a significant impact on market sentiment; strong data could enhance confidence in economic recovery, while weak data may exacerbate market uncertainties.
- AI Stocks Underperforming: Many AI-related stocks are struggling under the influence of Meta, highlighting the investment risks in emerging tech sectors and potentially prompting investors to reassess their portfolio risk exposures.
See More
Reminder for Microsoft Shareholder Class Action
- Class Action Notice: Rosen Law Firm reminds investors who purchased Microsoft stock between May 1, 2025, and January 28, 2026, to apply as lead plaintiffs by August 11, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Microsoft failed to disclose significant issues with its Copilot product line, including brand positioning and declining market share, which led to investor losses when the truth emerged.
- Capital Expenditure Concerns: Microsoft is required to increase capital expenditures by billions of dollars and reallocate GPU and CPU resources to enhance the competitiveness of its Copilot products, which may impact the profitability of its Azure services.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, recovering over $438 million for investors in 2019, demonstrating its success and resource advantages in this field.
See More
