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Bank of America discusses implications of AI PC war on chipmakers

Published 05/21/2024, 01:59 PM
Updated 05/21/2024, 02:01 PM
© Reuters.  Bank of America discusses implications of AI PC war on chipmakers

In a note to clients Tuesday, analysts at Bank of America discussed the implications of the artificial intelligence PC war on chipmakers, stating it sees a positive read-through for some names.

BofA sees positives for Arm Holdings (NASDAQ:ARM), while it believes the implications are neutral for Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD).

The bank explained that when combining the new ARM-based CPUs with greater power efficiency and high NPU TOPS count, and new Windows software specifically optimized for ARM, Microsoft claims their new Copilot+ PCs are 58% faster than current ARM-based MacBook Air and vastly more power efficient than Intel and AMD-based PCs.

"While next iterations of Intel/AMD processors should catch up in AI/NPU performance, we flag increased competition for PC CPUs overall, with Arm expected to take share (12% unit share in CY26E vs. just 2% in CY20) from x86 incumbents INTC/AMD," said the bank.

"Still, we expect AI PCs to carry ~10% ASP uplift, or 20% uplift for core component (like CPUs) vendors, offsetting some of the share loss."

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