It’s about to be a big week for Microsoft.
Microsoft is in the spotlight as it follows major announcements from OpenAI and Google last week and prepares to unveil its latest AI innovations at Build, the company’s annual developer conference.
The tech giant is also hosting an exclusive event for journalists on Monday detailing its hardware vision, which will likely include its new Surface line as well as some software updates.
The next day will be the main event, Microsoft’s Build keynote, where it is expected to announce updates to its AI assistant Copilot and its Azure cloud computing platform, as well as other Windows features.
Wedbush analysts said in a Monday note that they believe Microsoft’s advances in AI and cloud have been underestimated by the stock market – but Microsoft tools like Copilot will be a major source of growth revenue that could generate between $25 and $30 billion for Microsoft by its fiscal year. 2025.
According to Wedbush Managing Director and Senior Equity Analyst Dan Ives, Microsoft’s big week should be focused on three things: Here’s what should be front and center.
Copilot and other AI features in Windows
Wedbush analysts expect Microsoft to roll out more Copilot and AI features across its consumer and enterprise product stack.
Wedbush said in his analyst note that he expects more AI integration with Microsoft applications like Excel, Teams and Word, which will increase subscriptions and strengthen Microsoft’s consumer base.
More than 70% of Microsoft’s installed base “will ultimately rely on this AI-based functionality” over the next three years, the analyst said, which will be a big change for the company.
Ives said integrating AI capabilities into Windows will give developers the foundation to build AI use cases through Windows and, ultimately, Azure.
Overview of the AI framework in Azure
Ives said that in some ways the most important aspect of the developer conference will be showcasing the AI framework in Azure.
In his analyst note, Wedbush believes that Microsoft customers still have sufficient room to increase their spending with the company. For every $100 spent on Azure, there is about $35 to $40 in potential additional AI spending, they wrote.
“The cloud is the battleground between Google, Oracle and Amazon,” Ives said. “Microsoft is showing developers that they need look no further than us and OpenAI.”
Surface updates
Wedbush analysts predict new laptops as well as Windows updates this week.
New hardware expected to be announced on Monday, the day before Build launches, could include the Surface Pro 10 and Surface Laptop 6, The Verge reports. Both would run on Qualcomm’s Snapdragon X Elite processors as the company transitions to Arm, The Verge said.
New processors would arrive as Microsoft and other PC makers are under pressure to increase their processing chips since Apple decided to create its own. Recent reports also indicate that Apple is working on overhauling its entire Mac lineup with a series of new M4 processors that aim to put AI at the center.
But Microsoft’s Surface updates could start the trend. Ives said the new AI Surface updates will kick off a new PC-driven cycle, “AI-led, from Dell to Microsoft, and ultimately to Apple as well.”
Expect it to be a “landmark event”
Microsoft has big shoes to fill following OpenAI’s spring update and Google’s I/O conference last week. Both companies announced human-like updates for their AI products, demonstrating their AI agent’s ability to respond to voice prompts and act as a tutor.
Google also announced a revamped, AI-integrated search engine that competes with Microsft’s AI-powered Bing.
But according to Ives, Microsoft will be a “major obstacle”. Because of OpenAI’s collaboration with Microsoft, Ives said the conference will build on OpenAI’s announcements from last week.
Business Insider will be reporting live from Microsoft’s big keynote on Tuesday at 12 p.m. ET, so check back with us to follow along.
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