Microsoft Corp (NASDAQ: MSFT) is gearing up to showcase its ambitious "AI PCs" concept at an event in Seattle next month.
The company aims to outperform Apple Inc's (NASDAQ: AAPL) M3-powered MacBook Air with new Arm Holdings Plc (NASDAQ: ARM)- powered Windows laptops.
These upcoming devices, powered by Qualcomm Inc's (NASDAQ: QCOM) Snapdragon X Elite processors, are expected to surpass Apple's offerings in CPU performance, AI-accelerated tasks, and app emulation.
Microsoft's confidence in Qualcomm arises after years of underwhelming performance from previous chips, and Microsoft believes the Snapdragon X Elite will significantly enhance Windows on Arm's competitiveness, the Verge reports.
The company plans to demonstrate the superior capabilities of these processors compared to an M3 MacBook Air, highlighting faster CPU tasks, AI acceleration, and more efficient app emulation.
Microsoft is betting its new Windows AI PCs will outdo Apple's Rosetta 2 app compatibility layer by providing quicker app emulation.
This initiative follows Microsoft's introduction of x64 app-emulation for Windows 11, which aims to run apps smoothly on ARM devices without a native ARM64 version.
Furthermore, Microsoft intends to release consumer versions of the Surface Pro 10 and Surface Laptop 6 equipped with Snapdragon X Elite processors.
These devices, internally dubbed "next-gen AI Copilot PCs," distinct from those running on Advanced Micro Devices, Inc (NASDAQ: AMD) and Intel Corp (NASDAQ: INTC), will feature exclusive AI-powered Windows functionalities. One such feature, AI Explorer, will enable users to quickly retrieve past activities on their device, utilizing a Neural Processing Unit chip for a comprehensive timeline of events.
Microsoft also aims to enhance video streaming on Arm-powered devices with new AI features, including Windows Studio Effects for improved video calls and creative AI model integrations.
Microsoft anticipates that half of all new Windows devices will feature AI-capable chips by the end of 2026.
Lisa Su, AMD's CEO, highlighted the significance of AI PCs, describing them as the most transformative technology in the past fifty years. Earlier reports have revealed Intel's ambitious plan to revolutionize the PC industry by integrating AI into up to 100 million PCs by 2025.
Microsoft stock gained 47% in the last 12 months. Investors can gain exposure to the stock via Vanguard Information Tech ETF (NASDAQ: VGT) and IShares U.S. Technology ETF (NYSE: IYW).
Price Action: MSFT shares traded higher by 0.27% at $425.75 premarket on the last check Tuesday.