Microsoft has recently launched a new line of Windows PCs boasting advanced AI capabilities. However, these PCs, powered by Qualcomm chips and using designs from Arm Holdings, are facing challenges when it comes to gaming compatibility. This is a significant departure from traditional Intel-powered PCs that have dominated the market for decades.
The new AI PCs require an additional translation layer to run popular games like League of Legends and Fortnite, leading to glitches and performance issues. This is because the architecture of these chips is different from Intel’s, requiring software adjustments for optimal performance.
Analysts predict these compatibility issues will be resolved over time, especially with Intel’s own AI-powered chips expected to launch later this year. These upcoming models could potentially reclaim market share, particularly among gamers who prioritize performance and compatibility.
This situation echoes past struggles with ARM-based Windows devices. According to research firm Canalys, Apple currently leads the AI PC market with its entire Mac lineup, demonstrating the success of a unified hardware and software ecosystem. Intel, AMD, and Qualcomm are among the other players in the AI PC market, with total shipments reaching 8.8 million in the second quarter of 2024, accounting for 14% of the overall PC market.
Microsoft’s stock has seen significant growth, gaining over 25% in the last 12 months. Investors can access the stock through ETFs like the iShares Russell 1000 Growth ETF (IWF) and iShares S&P 500 Growth ETF (IVW).
Looking at Microsoft’s stock prediction for 2024, analysts typically use earnings growth and fundamental research for valuation and forecasting. However, many traders utilize technical analysis to create predictive models for share price movements. Some investors look to trends, such as moving averages and trend lines, to forecast future stock prices.
For Microsoft, the 200-day moving average sits at $410.92, below the current price of $417.74. Traders generally view a stock trading above its moving average as a bullish signal, while crossing below is considered a more negative indicator. Investors can use trend lines to make informed predictions about future stock prices, assuming stable market conditions.
MSFT stock is currently up 0.19% at $417.93 in premarket trading. This highlights the ongoing market interest in Microsoft and its potential for growth, despite the challenges faced by its new AI-powered PCs.
