Source: PaxForex Premium Analytics Portal, Fundamental Insight
The past year has been an exhilarating period for Microsoft shareholders. The company swiftly identified the transformative potential of artificial intelligence (AI) and made bold strategic moves to lead this technological revolution.
A standout initiative has been the development of Microsoft Copilot, a suite of generative AI tools that seamlessly integrate with the company's products and services. These tools allow users to automate various time-consuming tasks, enhancing productivity.
These digital assistants are central to Microsoft's new lineup of AI-focused PCs, unveiled at the Build 2024 developer conference. Early reviews have been overwhelmingly positive.
Here are three significant enhancements in Microsoft's latest devices:
- Neural Processing Units (NPUs)
Microsoft's latest Copilot+ PCs showcase their most sophisticated architecture yet, integrating a central processing unit (CPU), a graphics processing unit (GPU), and a neural processing unit (NPU). The NPU, together with over 40 on-device AI models, is engineered to handle a multitude of AI tasks locally, bypassing the need for cloud-based processing.
According to Microsoft, the Copilot+ PCs feature "the most powerful NPUs available in the PC market today," capable of executing over 45 trillion operations per second (TOPS). This capacity significantly boosts AI functionality and optimizes AI workload efficiency. Microsoft highlights that these PCs are "up to 20 times more powerful and up to 100 times more efficient for AI tasks, offering unparalleled AI acceleration." Moreover, they assure "all-day battery life," thanks to the NPU's energy efficiency.
- New AI Experiences
Microsoft's new Copilot+ PCs boast not only impressive processing power but also a plethora of enticing new features.
One standout feature is "Recall Instantly," designed to help users find documents, applications, websites, and more with ease. It acts like a photographic memory, capturing and indexing what's on your screen, allowing you to locate items with a simple prompt.
For creatives, there's "Cocreator," an AI-powered image-generation tool integrated with Paint. This feature allows artists to combine digital brush strokes with text prompts, enabling them to create and refine their compositions with ease. It also offers revision, editing, and tweaking options until the user is satisfied with the final product.
Another practical addition is "Live Captions," an on-device translation tool that can listen to speech in over 40 languages and provide real-time English captions.
These AI-driven tools significantly enhance the utility of the new Copilot+ PCs.
- Copilot Enhancements
The Copilot+ PCs are equipped with Microsoft's AI-powered assistant, Copilot, which can be activated with a simple tap of the Copilot key. Microsoft has revealed that Copilot will soon receive a major upgrade with the integration of OpenAI's latest model, GPT-4o. This enhancement enables Copilot to interact through both text and voice commands, and users can upload videos, photos, and screenshots to receive relevant responses.
This upgrade endows Copilot with the advanced capabilities of GPT-4o, offering improved speed and performance over previous versions. Despite increasing competition in the AI sector, Microsoft has reinforced its leadership with these AI-enhanced Copilot+ PCs. These new devices will be available from Microsoft's major computer partners starting June 18, along with select Copilot+ Surface devices.
Since the beginning of last year, Microsoft's stock has surged by 77%, significantly outperforming the S&P 500. Over the past decade, Microsoft's stock has risen by 970%, compared to the broader market's 182% gain. Additionally, its total return of approximately 1,160% over the decade far surpasses the S&P 500's 241% total return.
Despite these impressive gains, Microsoft stock remains relatively affordable, trading at 36 times forward expected earnings. Although this represents a premium compared to the market's multiple of 27, Microsoft's consistent performance justifies this valuation. Given the substantial opportunities presented by AI, Microsoft stock continues to be an attractive investment.
As long as the price is above 410.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 430.36
- Take Profit 1: 440.00
- Take Profit 2: 450.00
Alternative scenario:
If the level of 410.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 410.00
- Take Profit 1: 400.00
- Take Profit 2: 390.00
