Microsoft Corp. (MSFT) is raising prices across its Surface device line amid a global memory chip shortage. The move places the company among several major PC makers that are passing higher component prices on to consumers.
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The company said it is updating pricing due to rising costs tied to memory and key parts. “Due to recent increases in memory and component costs, Surface is updating pricing,” Microsoft said. It also noted that it will continue to review prices based on market trends and operating costs.
As a result, Microsoft no longer offers any Surface PC for under $1,000. For example, the 12-inch Surface Pro now starts at $1,050, up from $800 at launch. Meanwhile, the 13-inch Surface Pro 11th Edition has climbed to $1,500, well above its $1,000 launch price. In addition, the latest 13.8-inch Surface Laptop has seen price increases of as much as $500.
Meanwhile, MSFT shares rose 3.64% on Monday, closing at $384.
AI Demand Is Driving Higher Hardware Costs
The price hikes reflect a wider trend across the PC market. A surge in AI demand is putting pressure on the memory supply, raising costs for device makers. Companies such as Dell Technologies Inc. (DELL), Lenovo Group Ltd (LNVGY), and HP Inc. (HPQ) have also raised prices or limited device options.
At the same time, Apple (AAPL) has taken a slightly different path. Its latest MacBook Air and MacBook Pro models carry higher prices, but the company has added more storage to offset the cost. However, its Mac mini and Mac Studio models face long wait times for high memory versions, which shows how tight supply has become.
Looking ahead, Microsoft is expected to launch new Surface devices soon. These new prices may set a higher base for future models. This could shape how investors view margins and demand across the PC market as AI-driven costs continue to rise.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to the Street, Microsoft Corporation has a Strong Buy consensus, based on 38 analysts’ ratings. The average MSFT stock price target is $577.81, implying a 50.33% upside from the current price.
