Tech giant Microsoft (MSFT) has launched two new Copilot+ PCs that can run AI models without needing the internet. The devices include a Surface Pro convertible tablet and a Surface Laptop, which will look familiar to past models and run on Windows 11. Interestingly, these new models are more affordable than last year’s versions, with the Surface Laptop starting at $899 and the Surface Pro at $799. Both come with Qualcomm Snapdragon X Plus chips that have fewer cores than before but promise better battery life and smaller screens.
Furthermore, Microsoft says that the new Surface Laptop outperforms Apple’s (AAPL) 2024 MacBook Air with the M3 chip, and includes AI-powered features like Recall, which remembers what was on the screen. In addition, early users in the Windows Insider Program can test new tools like an AI helper in the Settings app and an improved Snipping Tool that captures only important information in screenshots. However, despite these upgrades, demand for AI PCs has been slow. Indeed, four-star analyst Andrew Marok from Raymond James pointed out that buyers are still waiting for clearer reasons to invest in them.
Nevertheless, Microsoft should benefit from offering updated models. In fact, support for Windows 10 will end in October. After that, Microsoft will stop regular updates, although it will offer paid security updates for those who delay upgrading. Historically, most users shift to newer versions around the times when the company ends support. Moreover, CEO Satya Nadella said that Windows 11 use has already grown by almost 75% compared to last year as businesses prepare to switch. It is also worth noting that pre-orders for the new Surface devices are already open, with the official release date set for May 20.
Is MSFT Stock a Buy?
Overall, Microsoft stock has a Strong Buy consensus rating among 34 Wall Street analysts. That rating is based on 30 Buys and four Holds assigned in the last three months. Furthermore, the average MSFT price target of $506.31 per share implies 16.2% upside potential.
