Get Ready: AI-Enabled Personal Computer Category About To Explode

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Introduction

The AI Personal Computer (PC) market is set to explode in 2024 according to analysis by research firm Gartner, which says AI PC vendors will ship 54.5 million units in the year which, while still relatively limited now, will account for 22% of all PC shipments by the end of the year which is up from 10% of PC shipments in 2023. The research firm, Canalys, indicates that the AI PCs sector is set to rise at a compound annual growth rate of 64% between now and 2027 and make up around 37% of all PCs shipped in 2025, 53% in 2026 and 60% in 2027.


What Are "AI PCs" and What Is Their Unique Selling Proposition (USP)?

“AI PCs” are AI-enabled personal computers outfitted with chips (neural processing units, or NPUs) capable of running large-language models and apps directly on the device, instead of the cloud, allowing for AI to be run locally on the computers themselves and being able to be used whenever and wherever – even without an internet connection.


Why Are AI PCs About To Take Off?

According to Alex Cho, president of HP's Personal Systems unit, the growth in PCs is due to upgrades and innovation in the PC market as a result of the introduction of neural processing units (NPUs) in the latest chip designs. This super-cycle of growth as a result of this computing revolution will start in the second half of the year as many consumers start replacing the devices they purchased at the start of the pandemic with AI PCs and, as such, represents an inflection point for the PC industry.


Which Companies Have Or Will Be Launching AI PCs in 2024?

Below is what the major AI-capable PC manufacturers have in the works for introduction in 2024 or, in some cases, have already done so:

  • Dell Technologies Inc. (DELL) has a totally redesigned, and more powerful, AI-capable PC (see here) on the market already with AI acceleration built into the device thanks to Intel Core Ultra processors and experiences brought to life by Windows 11. Its stock is UP around 12% YTD.
  • Lenovo Group Limited (LNVGY) unveiled a full lineup of more than 40 new devices and solutions powered by AI at CES 2024 in Las Vegas this past January (see here) that personalize the computing experience for both consumers and businesses like never before but they are not yet on the market. The stock is DOWN about 24% YTD.
  • Motorola Solutions Inc. (MSI) introduced the next-generation of AI-powered gaming desktops last October featuring the 14th generation Intel processor (see here). Their stock is UP approximately 1.5% YTD
  • HP, Inc. (HPQ)  CEO and President Enrique Lores says (see here) that they will launch their AI PC  "in the middle of 2024, let's say in the July, August time frame" and projects that the penetration of the AI PCs will be between 40 and 60% three years after launch. Its stock is DOWN about 5.5% YTD.


Conclusion

The stocks of the above 4 companies are, on average, UP 1.3% YTD but if the AI PCs category does, in fact, rise at the compound annual growth rate of 64% projected between now and 2027 - and make up around 37% of all PCs shipped in 2025, 53% in 2026 and 60% in 2027 - then we can expect the AI PC revolution taking off later in 2024 when all 4 players are fully participating.


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Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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