I think we have seen or heard news from some of the biggest names in computing, they are all sizing up resources into building Generative AI into their devices (mainly personal computing, or PC). These move hopes to help inject a boost of AI excitement into the PC market which have been suffering from low demand and become venerable.
Why PC Now, Not Before?
As we have already observed from some of the big names in AI, most of today’s AI software runs in the cloud, so why not the standard PC or Mac? They should be able to handle the generative AI work.
But for this, we need to understand that there are some limitations on how much AI work can be done on the device, because there is only one process in the AI which is suitable on devices which is inference.
These also depend on support from software makers. The idea of an AI PC is one capable of doing more of the work on the device thanks to extra processing power, among other features.
While definitions of just what makes up an AI PC can vary, the key is a separate AI processor, sometimes called a neural processor or neural engine. Canalys predicts that 19% of PCs shipped this year will have AI capabilities, rising to 60% by 2027.
Why AI on the PC Matters
After $Microsoft(MSFT)$ debut new Surface hardware and talk more about the role it sees for AI on the PC during their Build developer conference. Microsoft has already said it will equip Windows PCs with AI features, including a dedicated Copilot key.
This mean that moving more AI work onboard your computer could strengthen data privacy, reduce climate-stressing data-center power demands and empower users who want to be less dependent on tech giants.
Which Other PC Makers Is Next?
Other PC makers are set to detail their plans, including ASUS, which has been heavily promoting an AI PC event.
After years of trying to crack the PC business, Qualcomm has debuted its most compelling chips to date, powered by its Nuvia acquisition. On-device AI is a big piece of how Qualcomm sees its chips changing the experience of using a phone or laptop.
$Intel(INTC)$ is also not giving up its claim on this pie, they are touting its AI bona fides and saying it will ship 100 million PCs with AI accelerators by the end of next year.
$Apple(AAPL)$ has promised to share more on its generative AI strategy at its developer conference next month happening from 10 June to 11 June 2024. In early May, Apple debuted its M4 processor alongside new iPad Pros, and took pains to note what a capable AI chip it is.
Bloomberg's Mark Gurman reports that Apple has neared a deal with OpenAI, has had talks with Google and that a new wave of Macs with AI features will begin arriving late this year.
Lots Of Talks. When’s Next?
We will be going to see lots of talk about which chip can do more trillions of operations per second, but that is only about bragging rights on performance.
What would matters most to enterprises or anyone looking serious AI implementation would be the utility, how is any device maker going to help by figuring out how to tap AI's power to transform the computing experience.
Now come to reality, the stakes are larger and higher than before, with $Qualcomm(QCOM)$ finally decided to make some inroads into the laptop business with Microsoft, Microsoft is counting on Qualcomm to look at improving its competitive position when comes to battery life and performance.
On the other hand, Intel would be trying to protect its leading PC chip (CPU) provider position.There are some opportunities coming with the end of support for Windows 10, enterprises and corporate would be looking at PC refresh exercise and computer buying would once again come.
Do watch out for this in their next earnings. This could be a significant amount to whoever capture the bigger pie.
Who Will be The Early Adopters For AI PCs?
If we look at how the PC have evolved over the years, the PCs was widely used by enterprises when it first came out during the internet era.
Now it would be a different gameplay, when AI PCs come out, the business, operations, education, entertainment, manufacturing would be putting their hands on these AI PCs. The reason is because no one want to lose out as we have seen how early adopter in AI software or hardware have been making progress.
This time, the coverage will be across all industries, I do not think there is any one industry that would not be covered.
So people will ask what can an AI PC do? We need to understand that there is lots of ways an AI PC can be used, not only just for chatbots and making AI images. This AI PC could help end users to rethink how they would like to do their complex interfaces and computing, for example, programming with more computing intensive.
Here are some examples:
We will be able to communicate with our PC in plain English what we want to do, this is beyond the Personal Assistant, because what was communicated stay with you and PC.
For workwise, the on-device AI would be able to offer some context and suggestions in real time should you run into bottleneck during any part of the work done on the device.
What I have said above is also possible on phone, the reason is because phone computing capabilities would also improved with bigger batteries and processing power. I recently looking to buy a new phone, I have observed that phone batteries and processing power is set to increase.
What is used to be impossible, might be coming to reality.
Summary
So as investors, it is time we look beyond the usual AI winners like chip makers, software providers. The makers of devices or partners are also gearing up to take part in this AI revolution.
So if you are invested into AI stocks, you might want to look at some of these names mentioned in this article closely.
Appreciate if you could share your thoughts in the comment section whether you think AI PC would create another new AI revolution wave while we moved into a different level.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Comments