Microsoft (MSFT) stock was up on Wednesday despite news that its latest Windows 11 update has caused problems for gamers. The October security update has been a source of complaints since it was released, but the latest information represents a measurable case of it affecting the performance of a video game.
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A series of tests run by Digital Foundry found that the latest Windows 11 update can reduce frame rates in Ubisoft’s (UBSFY) Assassin’s Creed Shadows by as much as 50%, resulting in much worse performance for players. While Nvidia (NVDA) has released a patch to fix this problem, it doesn’t change the fact that Windows 11 continues to introduce more problems than what it fixes with updates.
The problems with Windows 11 spread beyond gaming, as Microsoft’s implementation of artificial intelligence (AI) in the operating system has caused several issues. One of the most major ones is delays in File Explorer, which can suffer long loading and hang times due to the search function being tied to Microsoft’s Copilot AI. To get around this, Microsoft has introduced a preload option for File Explorer, which is more of a band-aid than a real fix.
Microsoft Stock Movement Today
Microsoft stock was up 2.15% on Wednesday and has rallied 16.64% year-to-date. The tech company’s stock has also increased 12.77% over the past 12 months.
Microsoft has dedicated a massive amount of research and funds to AI, so it makes sense it wants to incorporate it into Windows 11. However, its failure to do so in a way that doesn’t hamper the user experience could have a long-lasting impact on the company’s credibility.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 33 Buy and two Hold ratings over the past three months. With that comes an average MSFT stock price target of $629.98, representing a potential 29.38% upside for the shares.
