Launch of Microsoft's AI Copilot + PCs is Expected to be Beneficial - Jefferies

A flash note from Jefferies predicts that Microsoft Corporation's (NASDAQ:MSFT) imminent release of its AI hardware slate, Copilot + PCs, would offer the tech giant with mild tailwinds.

Analysts predict that in the near future, major advancements in core performance will be a more important driver than artificial intelligence.

Second, they mention that Copilot + PCs will be released by seven manufacturers at launch, with Microsoft's Surface being the one to keep an eye on. According to Microsoft, new devices have longer battery lives and are noticeably speedier than their predecessors.

Finally, during the course of the next year, Microsoft predicts that AI PCs will make up around one-fifth of all PC sales.

One of the primary AI elements of Copilot + PCs, Microsoft has decided to initially withhold its Recall capability in order to maintain appropriate "quality and security." Initially, testers in the Windows Insider Program will be able to access it in preview.