Qualcomm (QCOM) is preparing to power Microsoft’s (MSFT) next-generation Windows PCs with artificial intelligence chips. Qualcomm COO and CFO Akash Palkhiwala joins Market Domination Overtime to talk about the company’s latest AI moves.
Palkhiwala explains that Snapdragon X Elite chips will feature three key new areas: “best-in-class” processing, long battery life, and “incredible AI experiences.” Qualcomm has announced more than 20 chip-enabled devices that consumers will soon be able to purchase.
“We are uniquely positioned to be the primary beneficiary of this growth in AI computers, and we have a chip that contributes significantly more than our competitors,” Palkhiwala says. He adds that Qualcomm has “the opportunity to be a leader” during market transitions and explains that this is “the beginning of a new chapter.”
For more expert insights and the latest market movements, click here to watch this entire episode of Market Domination Extensions.
This article was written by Melanie Riehl.
video transcript
Wanting to improve its artificial intelligence game, the company is preparing to strengthen Microsoft’s next generation Windows PC with artificial intelligence chips.
This announcement, which came today at the Microsoft event, is just as our Dan told us before.
You join us now to discuss Q Chief Financial Officer and Chief Operating Officer A CPA.
It’s great to see you again.
Thanks for being here, it’s great to be here Julie, how are you?
I’m doing fine.
Thank you.
I’m excited to get my eye on these new um PC CS and test them out.
What are the snapdragon chips that go into this P CS?
What kind of talents will we see in this new generation?
Yes, first of all, we are very excited about today’s announcement; Along with the next generation PC CS with co-pilot, Microsoft also mentioned that it will bring incredible A IX experiences to the devices to consumers.
Therefore, we are looking forward to the installed devices.
What Qualcomm has brought to this device is a custom chip that we built for this purpose.
It’s called the snapdragon exit chip, and it shows three important new areas.
The first of these is best in class, outperforming other PCs and all other PCs in terms of performance.
The second is very, very good battery life.
It shows very long battery life, extending several times, lasting more than 20 hours.
And this is not something P CS has had before.
And third is the incredible set of AI experiences that Microsoft outlined today, announcing more than 20 devices available exclusively on Qualcomm Snapdragon exo devices for the foreseeable future, all enabled by our chip and coming to consumers soon. to buy.
And, you know, we’ve been talking a lot about the huge demand we’re seeing from you and your competitors for all these types of AI chips.
Today, a comment came from a Microsoft executive that the company expects to purchase over 50 million A IP CSs within the next year.
What does this mean for Qualcomm’s sales and results?
This kind of demand?
Yes, I think this is an incredible opportunity for us.
We are in a unique position to be the primary beneficiary of this growth in A IP CS.
And we have a chip that contributes significantly to any of our competitors.
So we’re looking forward to it.
We think the PC is in the early phase of this new uh new generation, new form factors, new performance factors.
And it is Qualcomm that has done this together with Microsoft Akash.
Can you give me any numbers on this?
What kind of contribution to sales will you see this year?
I think we’re at the front end of a very long process for the company.
This is a huge silicon market, and it doesn’t happen very often in our generation to enter a new market like this, at this scale, with a product that has an unparalleled performance advantage – leadership and leadership for a long time. time.
So we’re looking at that, and on a similar front, you talked about your offerings compared to your competitors.
If we’re expecting that kind of growth in the PC market, what kind of market share do you expect to get from, say, Intel and AM DS, which also produce the chips that power the PC CS?
Yes.
II I think what you have to think about here is that the market transition is happening and Qualcomm is positioned to be the leader in the new PC.
And you can actually extrapolate that to a different set of numbers and we’ll see how that plays out.
But I really think we have the best product in the market, and we have the opportunity to be a leader in a new market beyond what we’re already doing in smartphones, automotive, Xr and other areas.
Speaking of all the areas where there’s cash, you know, I have to admit, we talk about NVIDIA a lot on this show, right?
It attracts great interest from investors.
How should we be thinking about the Chip universe right now, when people are so focused on NVIDIA, how should they be thinking about Qualcomm and its role in this whole AI revolution?
Yeah, I think that’s a great question if you think about AI; first appeared in the cloud.
As you know, we don’t have a lot of presence on the cloud side, but we are the clear leader in terms of device and what we see.
And today’s event from Microsoft was really the beginning of that change; In addition to the cloud, we will see the transition of artificial intelligence from the cloud on the device.
And the PC is the first device where Qualcomm has enabled this.
We’re seeing the benefit of this, but you’re going to see this happen in phones, tablets, automotive industrial devices, and Qualcomm is going to make this possible across all of those things.
And the way to think about on-device AI is actually something that enables use cases that can’t happen in the cloud because there are privacy benefits, security benefits, latency benefits, and there’s a very significant cost advantage because once you buy the device, the processing capacity is already available on the device and the usage You can actually run your scripts incrementally for free.
And Qualcomm is uniquely positioned to make this happen.
That’s why this is incredibly exciting and the beginning of a new chapter for us.
Akash, it’s nice to see you.
Thanks for joining us.
It’s nice to see you too.
Thank you very much.