Microsoft (MSFT) Stock Rises on Starlink Partnership and Xbox Tease

TLDR

• Microsoft stock rose over 2.5% on Wednesday after announcing a collaboration with SpaceX’s Starlink.
• The partnership will bring 450 community internet hubs to Kenya, combining satellite connectivity with AI tools and skills training.
• Microsoft has already connected over 299 million people globally, surpassing its 250 million target.
• New Xbox hardware announcements are expected soon, according to new Xbox head Asha Sharma.
• Wall Street analysts give MSFT a Strong Buy consensus, with an average price target of $594.02.

Microsoft $MSFT climbed more than 2.5% on Wednesday after announcing a new partnership with SpaceX’s Starlink to bring satellite internet to rural communities in Kenya.

The deal will create 450 “community hubs” across the country, pairing low-Earth orbit satellite connectivity with AI tools, cloud infrastructure, and local skills training.

To make it work, SpaceX will need to launch additional satellites to handle the increased demand.

Microsoft Corporation, MSFT

Microsoft framed the initiative as a sustainability effort. Chief Sustainability Officer Melanie Nakagawa described it as combining satellite connectivity with “community-based deployment models and local ecosystem partnerships.”

This isn’t the first time Microsoft and Elon Musk ventures have crossed paths. Back in 2020, Microsoft linked Azure to Starlink for remote cloud computing. More recently, the Foundry cloud system added support for Grok-driven AI models.

The Kenya pilot sits inside a broader push Microsoft is calling “AI-ready communities.” The company says getting people online is no longer enough — the goal now is making sure those people can actually use AI-powered tools.

Connectivity Numbers Tell the Story

Microsoft says it has connected more than 299 million people to the internet globally, beating its own pledge to reach 250 million by end of 2025. That includes over 124 million people across Africa.

The company’s own 2025 AI Diffusion Report highlights the gap Starlink is meant to help close. In Zambia, generative AI adoption sits at 12% nationally — but jumps to 34% among people with internet access. That kind of difference is exactly what the Kenya hubs are designed to address.

Starlink’s low-Earth orbit network is being positioned as a way to reach farming and rural areas where fiber and mobile networks haven’t been able to go.

Recent upgrades to SpaceX’s cellular Starlink aim for speeds up to 150 Mbps per user — enough to support AI-enabled tools like remote diagnostics and cloud-based education platforms.

Xbox Hints Add to the Buzz

Away from the satellite news, new Xbox head Asha Sharma dropped a quiet hint that hardware announcements are coming soon.

The current Xbox Series X and S launched in November 2020, making new hardware long overdue by most counts.

On Wall Street, analysts hold a Strong Buy consensus on MSFT based on 33 Buy ratings and three Holds over the past three months.

The average price target sits at $594.02, implying around 49% upside from current levels. The stock is down about 2.68% over the past year.

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