Microsoft (NASDAQ: MSFT) hit a new all-time high on Tuesday in lockstep with a broader market rally. A few days earlier, during an event at the new Microsoft campus on May 20, the tech giant introduced a lineup of Windows personal computers (PCs) designed for artificial intelligence (AI).
Dubbed Copilot + PC, the product offering includes Microsoft Surface and manufacturing partners Acer, ASUS, Dell Technologies, HP, Lenovo, and Samsung with prices starting at $999 and availability as early as June 18.
Here’s what Copilot + PC adds to Microsoft’s already strong investment thesis and why the growth stock has what it takes to hit a $10 trillion market cap by 2035.
Image source: Getty Images.
The next step for everyday AI
On its third-quarter fiscal 2024 earnings call, Microsoft said that Copilot in Windows is now available on nearly 225 million Windows 10 and Windows 11 PCs — double the amount of the prior quarter. Copilot is Microsoft’s AI-powered chatbot assistant for Microsoft 365 apps and more. According to the May 20 press release:
Copilot+ PCs are the fastest, most intelligent Windows PCs ever built. With powerful new silicon capable of an incredible 40+ TOPS (trillion operations per second), all-day battery life and access to the most advanced AI models, Copilot+ PCs will enable you to do things you can’t on any other PC. Easily find and remember what you have seen in your PC with Recall, generate and refine AI images in near real-time directly on the device using Cocreator, and bridge language barriers with Live Captions, translating audio from 40+ languages into English.
Building PCs with AI in mind is a boon for the industry because it supports the demand for AI-powered chips, can increase users’ productivity, and creates opportunities for developers and consumer electronics companies. In its recent earnings call, Microsoft said it offers a diverse set of AI accelerators made by Nvidia, Advanced Micro Devices, and its own “first-party silicon.”
A big test for the AI growth narrative is adoption. If consumers embrace these latest AI-focused products, it will…
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