Windows updates are a fact of life for computer owners, and tech giant Microsoft (MSFT) has another update in the works. This update to Windows 11 involves a range of new features and options, including a boost WIFI downloads and functions to compress documents to save hard drive space.
There will also be a feature for power management, even on computers that do not have a battery backup, like desktop personal computers (PCs). People will also be able to better set power draw rates, which could be helpful for those who prefer leaving their computer on around the clock .
Though Windows is no longer a major part of Microsoft’s business—it accounts for about 9% of the $245 billion Microsoft made in Fiscal 2024—it is remarkably profitable, and acts as a gateway to other tools such as Azure cloud.
An AI Bet
A new report from CNBC found that Microsoft’s finance leases that have not started yet, most of which are for data centers, represents $108.4 billion. That number is up over $100 billion in two years.
The leases in question are set to begin between 2025 and 2030, and may run as long as 20 years. While reports suggest this will put some strain on margins going forward, it may also produce solid results thanks to the rise of data center interest.
Is Microsoft a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 28 Buy and two Hold recommendations assigned in the past three months, as indicated by the graphic below. After a 32.17% rally in its share price over the past year, the average MSFT price target of $502.12 per share implies 19.03% upside potential.
