AMD's CFO believes that the AI PC trend will ultimately drive consumer sales in 2025, and will not have an immediate impact going into 2024.

AMD Sees AI's Potential to Transform The PC Segment However, The Process Will Take Some Time

At the Barclays Global Technology Conference, AMD's Chief Financial Officer Jean Hu was questioned about the state of the PC markets, the upcoming trends such as AI PC, and how big of an influence AI will have in bolstering sales. She admitted that the PC industry is moving towards recovery when it comes to revenue forecasts and potential consumer demand, but she believes AI won't have much of an impact next year. Here is what she had to say:

Going forward, you will see the typical seasonality in Q1 and then, you know, next year, based on industry and it's economic-sensitive sector, too. So, we don't know what the macroeconomic situation will be. But in the end, the PC market is stabilized.

That's the good news. I will say, as we announced yesterday, it's exciting in the long run with AIPC, because, eventually, a lot of AI work needed to be done at the device level. You cannot do everything at -- in the cloud. I think, probably not 2024, but definitely 2025, we'll see tremendous momentum from AIPC. That will help the replacement cycle.

Jean Hu (AMD CFO) at Barclay's Global Technology Conference via Seeking Alpha

AMD's hunger for joining the "AI bandwagon" was expressed on multiple occasions, especially when the company's CEO Lisa Su said that the company's first, second, and third priority is around AI. AMD sees AI as the next big thing of the decade, which is why Team Red has already positioned its next-gen product portfolio around elements that support generative AI developments.

In previous coverage, we talked about how AMD's VP & GM of Client OEM expressed that the company will offer clearer branding and naming for their next-gen AI PCs and the respective laptops, hinting that Team Red means business when it comes to facilitating the demand for AI compute power at a consumer level. The company is also fueling the AI race with CPUs that offer powerful AI capabilities such as the Ryzen 8040 "Hawk Point" series with XDNA 1 engines and the next-gen "Strix Point" APUs with 3x the AI performance with XDNA 2 engines.

AMD also said that they have already been offering the first laptops within the AI PC segment for several months with its Ryzen 7040 "Phoenix" lineup and have shipped millions of units.

We have the AIPC. AMD actually was the first to include the AI engine in the PC with the Ryzen 7000 series. We actually already shipped millions of units and we announced next generation product, which will include the AI engine. The thing about us is we think about the portfolio, we think about end-to-end AI, and we have a strong portfolio to provide the whole solutions from PC side to the data center side.

Jean Hu (AMD CFO) at Barclay's Global Technology Conference via Seeking Alpha

Since global PC and notebook shipments are expected to reach new levels within the upcoming years, companies like Intel and AMD need to position themselves in a way to capitalize on most of the growing markets. Intel's CEO Pat Gelsinger has already expressed the fact that AI can transform the current state of markets, especially when it comes to integrating AI-focused features into mainstream applications. It seems like we are moving towards a scenario where AI will indeed play a vital role in the PC industry, and it will be interesting to see what sort of developments are fueled by it.

News Source: ITHome