AI could enable a new kind of PC, could launch in 2024

HP CEO Enrique Lores told CNBC’s Jim Cramer on Tuesday that artificial intelligence will fundamentally change the personal computer industry, especially his own company.

“We really see an opportunity to create a new category of PCs that will drive a major revamp of this category,” said Lores. “”[AI is] This will help redefine what a PC is and the experience your customers will get will be radically different. We work with all major software vendors and major silicon providers to re-architecture PCs. ”

Lores said the company is developing AI-enabled PCs that allow customers to create spreadsheets and analyze data in record time. Instead of analysts spending hours poring over numbers, AI will be able to create spreadsheets, analyze data, and even interact with results in seconds. These new models could hit the market as early as 2024.

“I’ve been in the industry for years, Jim,” Lores told Kramer. “I have never seen an opportunity like this to really drive innovation and drive new types of customer needs that we truly believe will be fundamental going forward.”

HP’s second-quarter earnings report on Tuesday was disappointing, with revenue of $12.91 billion, below Refinitiv’s forecast of $13.07 billion. However, the company outperformed its second-quarter profit and raised its full-year forecast.

But Lores believes the second half of the year will be even better as HP completes channel inventory reductions and the holiday season kicks off.

“I think it’s a market-wide correction and it’s going to happen,” he said. “Looking at the first half results, we were impacted by the channel inventory cuts that we and the industry have been pushing.” “At the same time, the second half of the year will see particularly high consumer demand due to back-to-school and holiday seasons.”