The PC industry has been grappling with a supply glut after the pandemic. However, the earnings of Intel and Advanced Micro Devices have offered more evidence that a recovery is gathering pace. Executives at both companies are optimistic about the future of the PC market, citing the integration of artificial intelligence as a key driver of growth.
Highlights
- Intel CEO Pat Gelsinger said the arrival of the AI PC represents an inflection point in the PC industry.
- AMD boss Lisa Su said she expected some growth going into 2024 as AI-enabled PCs become more widely adopted.
- AI-enabled PCs refer to machines with advanced chips capable of running large-language models and apps powered by the technology directly on the device, instead of the cloud.
In the September quarter, AMD’s PC-focused business posted its strongest growth in two years. Revenue decline at Intel’s PC unit was the slowest in eight quarters. Analysts say that this is a sign that the PC market is finally starting to bottom out after a prolonged period of weakness. PC makers are also optimistic about the future, expecting a boost in demand during the holiday season and ahead of an expected Windows update next year from Microsoft.
However, some investors see the lack of AI apps as a potential hurdle to adopting AI-enabled PCs. Microsoft is the only major firm to create such offerings with its genAI-powered Copilot software. Despite this, analysts remain optimistic about the long-term prospects of the AI PC market. Canalys expects the adoption of AI-capable PCs to speed up from 2025 onwards, and make up around 60% of all PCs shipped in 2027.
