Microsoft’s Copilot AI in Windows May Boost Stock

Microsoft (MSFT) stock has risen 21% year-to-date, driven by advancements in AI and supply chain adjustments. The company has prioritized its Copilot service following the surge in AI popularity this year. Consequently, Microsoft is integrating Copilot into Windows 11 with new tools, potentially attracting investor interest and boosting MSFT stock.

Despite trailing Alphabet (GOOGL) and Meta Platforms in AI-driven consumer tools, Microsoft is heavily investing in its operating system. Recent updates for Copilot on Windows could position Microsoft as a leader in AI, while investing in its own infrastructure. The company has enabled voice activation for Copilot, allowing users to launch the AI assistant with the phrase “Hey Copilot.” This new opt-in feature is available across all Windows 11 devices, enhancing hands-free accessibility.

Yusuf Mehdi, Microsoft executive vice president and consumer chief marketing officer, stated, “We believe this shift to conversational input will be as transformative as the mouse and keyboard in terms of unlocking new capabilities on the PC for the broadest set of people.”

Additionally, Microsoft announced earlier this month a commitment of at least $10 billion with CoreWeave and up to $19.4 billion with Nebius to secure computing capacity for its AI operations. These AI cloud deals address Microsoft's urgent need for GPU resources as demand for AI services exceeds current availability.

Microsoft's shares have shown resilience due to its focus on AI and cloud services, driving substantial revenue growth. Analysts maintain a generally bullish outlook with price targets ranging from $520 to $650, indicating potential upside from the current market price of $512.