Starbucks Corp (SBUX  ) stock is climbing Thursday after reports revealed the coffee giant is building its own AI-assisted software tools that could replace applications it currently buys from outside vendors including Microsoft Corp (MSFT  ) and IBM.

Here's what you need to know:

Starbucks' In‑House Software Push Raises New Questions for Big Tech Vendors

The report centers on an internal presentation reviewed by Bloomberg showing Starbucks is constructing homegrown alternatives to a Microsoft inventory tracking system and an International Business Machines Corp (IBM  ) maintenance management tool with some of the new software potentially going live by the end of next year pending testing. AI-assisted coding played a central role in building the platform designed to replace the IBM tool and the company has been pushing its technology workers to adopt AI broadly even tying usage to employee bonuses, according to Bloomberg.

The effort is part of a wider push to slash $2 billion in total costs. Starbucks spends roughly $400 million annually on software alone and Chief Technology Officer Anand Varadarajan told employees earlier this year the company sees clear opportunities to bring that figure down.

The enterprise technology team is on pace to trim its budget by around $30 million in the fiscal year ending this September including approximately $10 million in software savings and another $13 million through reductions in outside contractors.

Critical Price Levels to Watch for SBUX

The stock is holding comfortably above its key trend levels sitting roughly 4.5% above its 20-day moving average and about 15.1% above its 200-day moving average a setup that suggests buyers have been consistently defending dips. The 20-day remains above the 50-day and a golden cross that took shape in January with the 50-day crossing above the 200-day continues to underpin the longer-term trend. With the stock near the top of its 52-week range between $77.99 and $108.88 traders will be watching closely for signs of either a sustained breakout or a stall near prior highs.

MACD is above its signal line with a positive histogram pointing to improving upside pressure and fading seller control. Benzinga Edge assigns the stock a momentum score of 63.4 reflecting a constructive but not top-tier trend relative to the broader market while value and growth scores of 16.31 and 17.49 respectively indicate the stock is being carried more by sentiment and price action than by fundamental cheapness.

• Key Support: $93.50 - a floor near the 200-day moving average at $93.15 where longer-term buyers have historically stepped in to defend the trend
• Key Resistance: $109.00 - a round-number ceiling that aligns with the 52-week high at $108.88 where breakout attempts often face their first real test

SBUX Price Action: Starbucks shares were up 3.31% at $107.31 at the time of publication on Thursday. The stock is approaching its 52-week high of $108.88, according to Benzinga Pro.