What companies could Microsoft acquire in the future?
Considering Microsoft's exposure to a wide range of tech businesses, including operating systems, enterprise software, video games, advertising, social media, code development, computing hardware, cloud computing, and artificial intelligence, there are a number of future acquisitions that the company could make.
With a huge premium now being placed on AI chips like those made by Nvidia (NVDA +0.93%), it would make sense for Microsoft to buy a company that would help it develop its own chips, since Nvidia's graphic processing units (GPUs) have proven to be a bottleneck in AI development.
In January 2023, Microsoft acquired Fungible, a chip-design startup, for an estimated $190 million. We could see other such deals from Microsoft as it attempts to build out its own proprietary chips.
An enterprise software acquisition wouldn't be surprising, or a purchase in an area that complements its business. Nadella has shown he's not afraid to spend big when the opportunity is right. A target like LinkedIn or GitHub that would help consolidate Microsoft's leadership with its enterprise customers would also be enticing for the company.