“The PC market is experiencing a remarkable resurgence as major players like Intel and AMD champion the transformative power of ‘AI PCs’, ushering in a new era of intelligent computing.”
The earnings reports from Intel and Advanced Micro Devices (AMD) have indicated a positive recovery in the personal computer (PC) market. Both companies have expressed optimism about the stabilizing PC market and the potential for growth with the integration of artificial intelligence (AI).
Intel CEO Pat Gelsinger stated that the arrival of AI-enabled PCs represents a turning point in the PC industry. AMD CEO Lisa Su also expects growth in the coming years, particularly with the AI PC cycle and Windows refresh cycles.
AI-enabled PCs are equipped with advanced chips that can run large-language models and AI-powered apps directly on the device, rather than relying on cloud computing. In the third quarter, AMD’s PC-focused business experienced its strongest growth in two years, while Intel’s PC unit saw the slowest revenue decline in eight quarters.
PC manufacturers are working to clear their inventory in anticipation of increased demand during the holiday season and ahead of an expected Windows update from Microsoft next year. Research firm Canalys predicts a return to growth in the PC market during the holiday season and expects AI-capable PCs to make up around 60% of all PCs shipped in 2027.
However, some investors remain cautious about the adoption of AI-enabled PCs due to the lack of AI applications. Currently, Microsoft is the only major company offering AI apps with its genAI-powered Copilot software. The presence of a “killer app” that drives the upgrade cycle is still uncertain.
Overall, the earnings reports from Intel and AMD indicate a positive trend in the PC market, with the integration of AI expected to drive further growth. The adoption of AI-enabled PCs is predicted to increase in the coming years, although the availability of AI applications remains a potential obstacle.