AI PCs: Hype vs. Reality

The tech world was buzzing with excitement about AI-powered PCs. With Windows 10 reaching its end, it seemed like the perfect time for a big upgrade. Adding AI to the mix was supposed to make these new PCs even more appealing. But, the sales numbers are not looking great, and partners are starting to worry. Investors are feeling the same way, as Microsoft's stock took a small dip during Friday's trading.

Dell Technologies Shares Concerns

Dell Technologies, a major player in the PC market, shared some insights that might make Microsoft nervous. Jeff Clarke, Dell’s vice chairman, mentioned that they expected AI to boost demand. However, he admitted that the reality hasn't lived up to their expectations from a year ago. Kevin Terwilliger, Dell’s head of product, added that consumers aren't buying PCs based on AI features. In fact, many people find AI confusing rather than helpful. Plus, many AI applications don't even need a new PC to run.

Microsoft's Next Move: Windows 11 Updates

Meanwhile, Microsoft is working on updates to the Windows 11 Full Screen Experience. This could be a big deal for PC gaming, possibly bringing it closer to the Xbox experience. These updates might even come out before the next Xbox itself. We could hear more about this at the Game Developers’ Conference 2026 in March.

Wall Street Remains Optimistic

Wall Street analysts still have a Strong Buy consensus rating on Microsoft stock. With 32 Buy ratings and 2 Hold ratings in the past three months, the average price target suggests a potential upside of 32.46%. This comes after a 14.12% rally in its share price over the past year.