AI-powered PCs drive PC market recovery

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The PC market is recovering, and AI is playing a key role. Intel and AMD, the two largest chipmakers, both reported strong growth in their PC businesses in the September quarter.

Intel CEO Pat Gelsinger called the arrival of the AI PC an “inflection point” for the industry. AMD CEO Lisa Su said she expects growth in the PC market in 2024 due to the AI PC cycle and upcoming Windows updates.

AI-enabled PCs come with advanced chips that can run large language models and other AI-powered apps directly on the device, instead of in the cloud. This makes AI more accessible and affordable for businesses and individuals.

PC makers are also expecting a boost in demand during the holiday season and ahead of an expected Windows update next year from Microsoft.

Research firm Canalys expects the PC market to return to growth during the holiday season and for the adoption of AI-capable PCs to speed up from 2025 onwards. However, some investors see the lack of AI apps as a potential hurdle for their adoption. Microsoft is so far the only major firm to create such offerings with its genAI-powered Copilot software.

The sources for this piece include an article in Reuters.

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