Microsoft (NASDAQ:MSFT) launched an artificial intelligence (AI)-powered personal computer, branded as “Copilot+ PCs.” The move aligns with the company’s strategy of integrating AI across its product lines, giving Microsoft an advantage over competitors.
The tech giant asserts that the new Copilot+ PCs include the “Recall” feature, which creates a searchable history of user activities to enhance productivity. Moreover, it will integrate the latest GPT-4o technology from OpenAI.
It’s important to highlight that Microsoft claims these AI-powered PCs outperform Apple’s (NASDAQ:AAPL) 15-inch MacBook Air by up to 58% in sustained multithreaded computing applications and provide up to 20% more battery life in local video playback. MSFT stated that pre-orders have begun, and the PCs will start at $999.
AI PCs Bring Significant Growth Opportunities
According to a Reuters report, Yusuf Mehdi, MSFT’s head of consumer marketing, projects that 50 million AI PCs will be sold within the next year, potentially accounting for 20% of global PC sales. This presents a significant growth opportunity for Microsoft, which has taken the lead in the AI-powered PC segment with its latest offering.
This strategic move to integrate AI into personal computing will likely enhance and expand its AI capabilities. Moreover, its early lead in the AI race could result in sustained growth and help the company return more cash to its shareholders.
Is Microsoft a Buy or Sell Stock?
The integration of AI into its offerings is driving significant revenue growth, which in turn is leading to a rally in its share price. MSFT stock is up about 33.5% in one year and trading near an all-time high.
Despite this significant appreciation in its value, Wall Street analysts are upbeat about MSFT’s prospects. It has 32 Buys and one Hold recommendation for a Strong Buy consensus rating. These analysts’ average price target of $491.56 on MSFT stock implies 15.57% upside potential from current levels.
