Oh, so, that's what Cristiano Amon was talking about.
A few weeks ago, the president and CEO of Qualcomm (QCOM) , was speaking to analysts during the semiconductor and software company's first-quarter earnings call.
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"We have a lot of product momentum right now, and especially with all the launches, I would encourage everybody to go watch the Microsoft Build event, especially what is happening with on-device AI," Amon said during the May 1 call.
"There's a lot of product momentum in launches as those devices start ramping up in volume," he added.
The Microsoft (MSFT) Build event is the software giant's annual three-day developers conference, which kicked off on Tuesday with the tagline ""How will AI shape your future?"
"This year’s Microsoft Build is underscored by the transformative impact of our AI technology on organizations leveraging it to boost efficiency, elevate customer experiences, and achieve groundbreaking innovations," the Redmond, Wash.-based company said.
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Microsoft makes AI announcement
The event, which dates back to 2011, includes keynote speeches and about 480 sessions.
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The Build conference follows last week's Google (GOOG) I/O developer conference and began one week before Nvidia's (NVDA) earnings report.
Microsoft is a multi-billion dollar backer of OpenAI, the developer of ChatGPT, which launched in November 2022. OpenAI's ChatGPT-4o will be integrated into Microsoft's Azure AI Studio offering.
"We are excited about the upcoming launches of next-generation Windows AI PCs powered by Snapdragon," Amon told analysts, referring to Qualcomm's suite of system-on-a-chip semiconductor products for mobile devices.
"The Snapdragon X Elite is the leader in performance on-device AI and power efficiency for the Windows ecosystem and is optimally positioned to lead the transition to true AI PCs," he said.
On Monday, Microsoft announced a Surface Laptop and a Surface Pro tablet with a Qualcomm chip that can run some AI tasks without an internet connection.
Meanwhile, Dell (DELL) announced a range of AI-enabled PCs powered by Qualcomm processors and said a new server that supports Nvidia's latest chips will be available in the second half of 2024.
Dell also launched its latest servers, compatible with Nvidia's Blackwell chips. The new servers also offer liquid cooling technology, rather than air cooling, which tends to consume more power.
The PC market could use some new tech to bolster sales. In December, the research firm ICD said "Two consecutive years of double-digit year-over-year drops is an unprecedented trend in the PC market but will likely contribute to a recovery thereafter."
IDC said that despite short-term challenges, the firm expects a market rebound in 2024 and beyond, with many factors converging within the next two years, including aging PCs that have surpassed the four-year mark and demand caused by a migration toward Windows 11.
Analyst: Qualcomm positioned 'very well'
And, of course, integrating AI capabilities into PCs is expected to lead consumers and businesses to upgrade existing machines. The total PC market this year should grow by 3.4% compared with 2023, IDC said.
After TheStreet Pro's Chris Versace reviewed the various AI PC announcements, he boosted his price target on Qualcomm.
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He noted that other computer makers like Dell, Lenovo (LNVGY) , HP (HPQ) , Asus (AKCPF) , Acer (ACEYY) , and Samsung (SSNLF) are also launching AI-ready PCs powered by Snapdragon chips from Qualcomm.
"This positions Qualcomm and its shares very well, while also helping to diversify the company’s business away from the smartphone market," Versace said.
He added that he was inclined to raise his price target for Microsoft too, but said "We’ll hold off at least until we make it through today’s Build conference sessions."
Qualcomm stock has been climbing over the last 12 months, rising from $105 per share a year ago to $200 at the last check.
Benchmark analyst Cody Acree raised the firm's price target on Qualcomm to $240 from $200 and kept a buy rating on the shares after Microsoft launched its new family of Copilot+ PCs, with all systems initially powered exclusively by Qualcomm's Snapdragon X Series of processors.
The analyst said that he believes this Window's and joint OEM launch featuring Qualcomm's processors is "a watershed event for the company as it places Qualcomm as a direct competitor for the first time in the mainstream laptop market."
Acree said that he sees Qualcomm's potential share gains in the AI PC market as one of the company's key investment drivers, the analyst added.
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