3 reasons you should buy Microsoft stock like there’s no tomorrow
The tech giant has recently made its latest move to gain an edge in the field of artificial intelligence.
The past year or so has been a very interesting time. microsoft (MSFT 0.87%) Shareholder. The company quickly recognized that advances in artificial intelligence (AI) were a game-changer, and took a number of bold steps to be at the forefront of this technological change.
Chief among them was the development of Microsoft Copilot, a suite of generative AI tools that integrate seamlessly into the company’s other products and services. It allows people to automate a series of time-consuming tasks and increase productivity.
These digital assistants are at the heart of a new collection of AI-driven PCs that Microsoft just unveiled at its Build 2024 developer conference. Early reviews were amazing.
Here are three of the biggest upgrades to Microsoft’s latest devices.
Image source: Getty Images.
1. Neural processing unit
Microsoft’s new Copilot+ PCs feature the company’s most advanced architecture ever, integrating a central processing unit (CPU), graphics processing unit (GPU), and neural processing unit (NPU). Combined with over 40 on-device AI models, the NPU is designed to run a variety of AI functions locally. without You need to interact with the cloud.
The company said its Copilot+ PCs “have the most powerful NPU in the PC category today” and can perform more than 45 trillion operations per second (TOPS), helping to support new AI features on the device. Microsoft claims its Copilot PCs are “up to 20x more powerful and up to 100x more efficient to run AI workloads and deliver industry-leading AI acceleration.” The company also promises “all-day battery life” thanks to the NPU’s power efficiency.
2. New AI experience
Having the fastest processing power doesn’t mean much if you’re not churning out new features that spark your imagination, and Microsoft didn’t disappoint.
Have you ever had trouble finding something you know is on your computer but can’t find? One of the most promising new features is Recall Instantly. Microsoft said the feature “feels like having photographic memory.” It can help users find documents, applications, websites, and more. Recall captures and indexes what’s on your screen so you can search for items with simple prompts.
Creative types will appreciate Cocreator, an AI-based image creation tool integrated with Paint. Artists can combine digital brush strokes with text prompts that describe what they want to compose, and Cocreator will do its best to lend a helping hand. This tool also allows you to modify, improve, edit, and tweak your output until you’re satisfied with the finished product.
Another handy feature is live captions. This on-device translation tool can listen to speech in over 40 languages and translate what you say into English captions in real time.
These and other AI-based tools promise to make your new Copilot+ PC even more useful.
3. Co-pilot
Naturally, the Copilot+ PC is equipped with Microsoft’s AI-powered digital assistant that users can summon by tapping the Copilot key.
Microsoft also announced that Copilot has been upgraded with OpenAI’s GPT-4o, which was released last week. This allows Copilot to interact with users through text and voice commands, but users can also upload videos, photos, and screenshots to get answers to relevant questions.
This means Copilot will be equipped with all the features of GPT-4o, providing greater speed and performance than its predecessor.
Is Microsoft stock a buy?
Microsoft was quick to seize the AI opportunity, but competition is increasing. But with AI-powered Copilot+ PC, Microsoft has the upper hand once again. The company doesn’t waste time. The new Copilot+ PCs, along with select Copilot+ Surface devices, will be available starting June 18 from Microsoft’s largest computer partners.
Microsoft’s stock price has risen 77% since the beginning of last year, more than double the increase in the previous quarter. S&P 500. That’s not surprising, as the stock has soared 970% over the past decade, far outpacing the overall market’s 182% rise. Likewise, the total return of approximately 1,160% over that 10-year period is less than the index’s total return of 241%.
That said, Microsoft stock is still relatively cheap, trading at a valuation equivalent to 36 times projected earnings. That’s a premium to a multiple of 27 to the broader market index, but Microsoft’s performance shows why it deserves that premium.
This, combined with the significant opportunity that AI represents, helps explain why Microsoft stock is a buy.
Danny Vena holds a position at Microsoft. The Motley Fool has a position at and recommends Microsoft. The Motley Fool recommends the following options: Buy Microsoft’s January 2026 $395 call and sell Microsoft’s January 2026 $405 call. The Motley Fool has a disclosure policy.
