- Microsoft and Nvidia unveiled the Surface Laptop Ultra on October 7, 2026, with an Nvidia RTX Spark chip designed to run AI models locally rather than relying on cloud infrastructure.
- The Surface Laptop Ultra starts at $2,599 and becomes available October 16, alongside Nvidia-powered AI PCs from other manufacturers.
- The Surface RTX Spark Dev Box, aimed at developers and AI engineers, is expected to ship in November at a starting price of $5,999.
- Microsoft reported fiscal Q4 revenue of $90 billion, up 18% year over year, with adjusted earnings up 23% to $4.74 per share.
- The Zacks Consensus Estimate calls for FY27 revenue growth of 17% to $390.2 billion and EPS growth of 9% to $19.65.
- Microsoft trades at 27X forward earnings, a premium to the Zacks Computer-Software industry average of 16X and a slight premium to the S&P 500.
- Microsoft shares are up 9% year to date, and the stock carries a Zacks Rank #3 (Hold).
- A fair value estimate of US$578.82 implies the stock is 8.5% undervalued, and the market value is around $3.9 trillion.
Quotes
“Starting at $2,599, the new laptop will become available on October 16”
“Microsoft stock trades at 27X forward earnings, well above its Zacks Computer-Software industry's average of 16X”