Intel and AMD Drive PC Market Recovery Amidst Recent Earnings Disclosures
During their recent earnings briefings, both Intel and AMD emerged as key players orchestrating a notable recovery in the personal computer market. Executives from both companies highlighted a palpable stabilization in the PC market, attributing the positive trajectory to a concerted emphasis on integrating artificial intelligence (AI) for future growth.
AI PC: A Transformative Shift in the Industry
Intel’s CEO, Pat Gelsinger, characterizes the AI PC as a watershed moment, marking a transformative shift in the PC industry. Lisa Su, CEO of AMD, echoes this sentiment, projecting growth into 2024 driven by the AI PC cycle and imminent Microsoft Windows refresh cycles. The term “AI-enabled PCs” denotes a new breed of machines armed with sophisticated chips capable of autonomously running large-language models and AI-powered applications directly on the device, eliminating the reliance on cloud-based processing.
The third quarter witnessed a commendable surge in AMD’s PC-focused business, experiencing its most robust growth in two years. Concurrently, Intel’s PC unit reported its slowest revenue decline in eight quarters. Justin Sumner, a senior portfolio manager at Voya Investment Management, attributes the spike in PC demand to the remote work surge prompted by the pandemic. Sumner expresses optimism, forecasting a reversal in this trend and anticipating a customary inventory refresh that signals an overall market upswing.
Anticipation of Heightened Demand and Inventory Streamlining
In anticipation of heightened demand for the upcoming holiday season and the imminent Microsoft Windows update, PC manufacturers are diligently streamlining their inventories. Research firms, Canalys among them, substantiate these expectations by noting a deceleration in the industry-wide decline of PC shipments in the third quarter. They anticipate a return to growth in the PC market during the eagerly awaited holiday season. This aligns seamlessly with the affirmative outlook presented by Intel and AMD, signaling a promising renaissance for the PC industry.
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