Sales of personal computers may begin to rebound as early as next year, when buyers will be encouraged to replace their aging PCs from the Covid era.
The release of PCs with sophisticated new AI chips that can function as background digital assistants and have more processing capacity could increase sales, which have been declining since the Covid upgrade cycle that was fueled by distant workers peaked in late 2021.
Speaking on Sunday at the 2024 Taipei International Information Technology Show, or Computex, CEO Jensen Huang of Nvidia, the pioneer in AI chips, announced two intriguing new partnerships with
Asus and MSI to integrate AI chips into desktop and laptop computers. “Your future laptop will be constantly helping you in the background,” Huang stated.
He further stated, “The PC will run apps that are enhanced by AI, from writing, photo editing, to digital humans that are AIs.”
When these new laptops would be available on e-commerce websites and in-store on the shelves of electronic merchants was not disclosed by Asus or MSI.
However, when they do, it’s anticipated that they will trigger a wave of AI PC upgrades, increasing demand for technology hardware stockpiles.
The tech hardware market, which peaked during the Covid upgrade cycle, is set for another liftoff, according to analysts led by GS’s Faris Mourad.
“The IT hardware market reached its pinnacle during the pandemic as most workers who worked from home bought gear.
At present, the market has finished unwinding this cycle, and firms such as HPQ are trading at a multiple of nine times their estimated 2025 earnings.
The majority of PCs bought during the pandemic should be replaced shortly.
Future PC and mobile device models should have observable AI features, improved security, and increased processing power.
This will encourage US consumers to spend more than they have in the past on new equipment, resulting in an exceptionally strong cycle.”
Mourad disclosed that the new PC & Mobile Device AI Upgrades basket (GSXUPCAI) allows GS clients to take advantage of the AI PC upgrade cycle.
“Technology hardware stocks that could profit from upgrades to PCs and mobile devices that potentially incorporate AI technologies make up the basket.
The expert stated that the basket can trade up to $250 million in a single day without any name reaching 10% of ADV.