Microsoft (MSFT) posted its latest quarterly earnings showing revenue increased nearly 18% year-over-year to $62.02 billion, beating Wall Street expectations of $61.14 billion. The personal computing segment of this business, which includes Windows, Surface, Bing, and Xbox, contributed to $16.89 billion in revenue, beating Wall Street expectations of $16.79 billion.

With the advent of AI-powered PCs, questions arise around the impact of Microsoft PC sales and how the company will operate moving forward with this new tech.

Mortonson explains Microsoft’s advantage with this next generation of tech: “When you put the gen AI infrastructure into place, and we’re doing it right now, I mean, you looked at results like last night with SMCI just absolutely annihilating the number on servers, but as you go forward, we’re gonna have to upgrade not only handsets but the PC. We are going to start hearing this term of ‘generative IOT devices,’ in the ’25, ’26 time frame, you’re going to have to see most PCs being upgraded to have gen AI functionality. What that means is, you’re going to have a combination of GPUs, CPUs, and other accelerators on that next generation PC… So, Microsoft is in the pole position to leverage not only through Azure that but, the gen AI PC cycle where every PC in the world will eventually have to be upgraded.