AMD President Victor Peng Sees AI-Powered PCs As Key To Rivalry With Nvidia, Intel

Advanced Micro Devices, Inc. AMD President Victor Peng expressed his confidence in AI-powered PCs as a pivotal tool in the company’s competition with NVIDIA Corp NVDA and Intel Corp INTC.

What Happened: According to Peng, the market for AI PCs is set to expand further, with AMD anticipating increased adoption in the latter half of the year. AI PCs are personal computers integrated with processors specifically designed for AI tasks, such as real-time language translation, reported CNBC on Thursday.

Canalys, a tech research firm, predicts that the surge in generative AI will drive PC sales, with an estimated 60% of PCs shipped in 2027 being AI-capable, as per a December report.

"We are seeing AI PCs becoming a bigger factor, and we have a good lead in AI PCs with the recent announcements … I think we're extremely well positioned, both in AI and in other traditional businesses," said Peng.

The interest in AI spiked following the viral launch of ChatGPT, a chatbot known for its human-like responses to user prompts, in November 2022.

See Also: Fresno EOC Taps Nuvve NVVE To Transition To An EV Fleet Without Taxing The Powergrid In $16 Million Deal

"AI is going to continue to be very big in this year and and beyond. I mean, as large as the opportunities already are, we're still in the early innings of AI," said Peng.

Why It Matters: AMD’s focus on AI-powered PCs comes amid a heated competition with Nvidia and Intel, both of which are also making significant strides in AI technology.

In January, AMD CEO Lisa Su highlighted the massive AI opportunity in front of the chipmaker. However, despite the hype, AMD’s stock price fell after the company reported Q4 results.

On the other hand, Intel launched Core Ultra chips in December to run AI programs faster, which will power over 230 of the world’s first AI PCs from companies including Acer, ASUS, Dell, HP, and Lenovo.

Meanwhile, Nvidia, which currently dominates the market for GPUs used in AI applications, announced new GPUs in January for running generative AI applications on PCs.

Despite the competition, Goldman Sachs analyst Toshiya Hari maintained a Buy rating on AMD’s stock, seeing the near-term correction as a buying opportunity. Hari also raised AMD’s price target from $157 to $180.

Read Next: Elon Musk Shares Cryptic 1-Word Post After Judge Rescinds His $56B Tesla Pay Package

Photo via Shutterstock