In January 2024, Microsoft Corp (NASDAQ:MSFT) added a brand spanking new button to its Windows laptops.
An innocuous-sounding development that nonetheless served as a simulacrum of the changing face of home computing.
Wedged between Alt and <, the Copilot button provided one-touch access to Microsoft’s suite of generative artificial intelligence features for the first time.
A quick press of the Copilot button and you’re presented with the plethora of end-user experiences made possible by AI, such as text assistance, code generation, automation and language translation.
Under the hood, these Windows laptops are kitted out with ever-more-powerful processors designed by AMD and Qualcomm (and increasingly less so, Intel), some of them replete with designs based on highly efficient Arm Holdings PLC (NASDAQ:ARM) architecture.
Over at team Apple Inc (NASDAQ:AAPL, ETR:APC), UK users now have access to the Cupertino titan’s brand of AI following the release of Apple Intelligence in the latest round of software updates.
Hopes are high that this will re-energise a recent dip in smartphone demand which has proved a headwind for Apple in recent times.
No doubt, it’s these snazzy new AI features that are expected to drive consumer demand for home PCs, laptops and other hardware devices going forward.
This breakneck pace of AI advancements is also driving a mammoth re-rating of AI-adjacent stocks in the US.
Nvidia Corp takes the cake in this regard, having emerged from relative obscurity to the second-largest company in the world.
Microsoft also touched an all-time high this year, while Apple is currently at a record-setting valuation of 3.74 trillion dollars.
Here in the humble UK, there is a far thinner corpus of AI-adjacent stocks to pick from, unless you think outside of the box.
Retailers, for instance, play a crucial role in delivering fancy new AI-powered hardware to customers, and one retail park stalwart is emerging as a critical player in the supply chain.
FTSE 250-listed Currys PLC (LSE:CURY) commands a 75% share of the AI-powered laptop market in the UK, according to its latest trading update.
Surging demand for AI-powered tech represents a “saving grace” for Currys, AJ Bell analyst Dan Coatsworth said in response to the company’s interim results. “Demand is growing for (AI) and Currys is laughing all the way to the bank,” he added.
Charles Stanley’s Garry White, meanwhile, said Currys is “reaping the benefits” of AI demand.
That being said, Currys is having to swim against the tide in some respects.
Labour chancellor Rachel Reeves’ tax-heavy debut Budget was met with genuine outrage by retailers across the board.
These new policies “will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable”, said Currys.
Yet hopes are high that a new wave of hardware demand will more than offset these challenges.
The market seems to be aligned with this optimism- shares flew 14% higher following Currys’ interim earnings report on Thursday.
There could be more gains up the stock’s sleeves according to Richard Hunter at interactive investor. He said: “(Currys’) valuation remains undemanding and with a potentially bright future in store, the market consensus of the shares as a buy will likely remain intact.”
One can only suspect, however, that the private equity vultures are licking their lips in anticipation.