Microsoft Takes Aim at Apple with New AI-Ready PCs. Which Stock Is the Better Buy?

Core Viewpoint - Microsoft is leading the AI market with its new lineup of AI-powered PCs, aiming to sell 50 million units this year, while Apple is facing challenges in the same space [1][3]. Group 1: Microsoft’s AI Strategy - Microsoft has introduced Copilot Plus PCs in collaboration with major manufacturers, including Acer, Asus, Dell, HP, Lenovo, and Samsung [1]. - The new AI PCs will feature a redesigned Windows 11 OS with enhanced Copilot integrations, powered by OpenAI's GPT-40 model [1][2]. - A key feature called Recall will allow users to track and retrieve their actions securely across devices and the web [2]. Group 2: Competitive Positioning - Microsoft claims its Copilot Plus PCs are 58% faster than Apple's M3 MacBook Air, emphasizing their lightweight design [2]. - Apple is reportedly seeking to secure 2-nanometer chip-making capacity from TSMC to develop its own AI chips, indicating its intent to catch up in the AI sector [3]. Group 3: Financial Performance - Microsoft reported a 17% revenue growth in its most recent quarter, while Apple experienced a 4% decline in revenue [5]. - Microsoft has a forward P/E ratio of 35.99, compared to Apple's 29.09, reflecting its higher revenue growth and justifying the valuation difference [6]. Group 4: Innovation and Market Outlook - Microsoft is viewed as the current innovation leader in the AI space, while Apple is seen as lagging and needing to return to its innovative roots [6].