Qualcomm (QCOM) plans to power Microsoft's (MSFT) next-generation Windows PCs with its artificial intelligence chips. Qualcomm's COO and CFO Akash Palkiwala joins Market Domination Overtime to explain his company's latest AI moves.
Palkhiwala explains that the Snapdragon X Elite chip has three major new areas: “best-in-class” processing, longer battery life, and “an incredible set of AI experiences.” Qualcomm has announced more than 20 devices enabled by this chip that will soon be available for purchase by consumers.
“We are uniquely positioned to be a major beneficiary of AI PC growth, and we have chips that contribute significantly more than our competitors,” Palkiwala said. He added that Qualcomm has an “opportunity to be a leader” as the market transitions, describing it as “the beginning of a new chapter.”
For more expert insights and the latest market trends, click here to watch the full episode of Market Domination Overtime.
This post was written by Melanie Leal
video transcript
Aiming to advance its AI efforts, the company planned to include an AI chip in Microsoft's next-generation Windows PC CS.
The announcement will be made today at the Microsoft event that our own Dan told us about earlier.
Q Chief Financial Officer and Chief Operating Officer A Let's talk about certified public accountants.
I'm very pleased that we were able to meet again.
Thank you for being here, I'm glad you're here, Julie, how are you?
I'm doing fine.
thank you.
I'm excited to have a look at these new um P CS's and test them out.
Well, what Snapdragon chip is in these P CS?
What features does this new generation have?
Well, first of all, we're very excited about today's announcement. In addition to the next generation of P CS with CoPilot, Microsoft talked about bringing a great A IX experience for consumers to devices.
Therefore, we are very much looking forward to seeing these devices submitted.
Well, what Qualcomm provides in its devices is a specific chip built for this purpose.
It's called the “Snapdragon exit chip,” and it shows three important new areas.
The first is best-in-class processing that outperforms all other PCS in terms of performance.
Second, it has very good battery life.
The battery life is very long, several times more than 20 hours.
And this is not something that P CS has ever experienced.
And the third is this amazing set of AI experiences that Microsoft outlined today. For the time being, he is only available on Qualcomm Snapdragon exo devices, but we have announced over 20 devices that will all be enabled by our chips that will soon be available to consumers. buy.
You know, we've talked a lot about the huge demand from your company and your competitors for all these kinds of AI chips.
A Microsoft executive commented today that the company expects to purchase more than 50 million A IP CS over the next year.
What does this mean for Qualcomm's sales and earnings?
That kind of demand?
Well, I think it's a great opportunity for us.
We are uniquely positioned to be a major beneficiary of A IP CS growth.
And we have chips that significantly outperform our competitors.
I am very much looking forward.
We think PCs are at the beginning of this new, new generation, new form factor, new performance factor.
And Qualcomm is making that happen with Microsoft Akash.
Could you tell me the numbers around that?
What kind of contribution will you probably see to your sales this year?
I think we're at the forefront of a very long-term initiative for the company.
This is a huge silicon market, and in our generation, it's amazing to be able to enter a new market with a product that has unique performance advantages that can provide leadership at this scale and maintain leadership over a long period of time. Very rarely. time.
So, we're looking, on a similar front, you talked about your product and your competitors.
If you're expecting this kind of growth in the PC market, for example, what kind of market share do you expect to gain from the Intels and AM DSs of the world that are making chips that power PC CS?
Yeah.
II I think a market transition is occurring and Qualcomm should be considered the new PC leader.
And we can actually extrapolate that to another set of numbers and let's see how that plays out.
However, we truly believe that we have the best product on the market. We also have the opportunity to become leaders in new markets beyond what we've done in the past in smartphones, automotive, XR, and other areas.
Now, speaking of all the areas where you have money, you know, we talk a lot about NVIDIA on this show, right?
This is of great interest to investors.
Well, how should we think about the chip world now that people are paying attention to NVIDIA? How should we think about Qualcomm and its role in this whole AI revolution?
Well, I think this is a great question when you think about AI. AI was first born in the cloud.
You know, we don't have a big presence on the cloud side, but we're the clear leader when it comes to devices and what's actually happening.
And today's Microsoft event is just the beginning of that change, as the transition of AI will take place from the cloud, not just in the cloud, but on devices as well.
And the PC is just the first device where Qualcomm has made that possible.
And we're seeing the benefits of that, but it's going to happen across mobile phones, tablets, automotive industrial devices, and Qualcomm will enable it across all of these.
And the way we think about device AI is actually enabling use cases that aren't possible in the cloud. Because there's a privacy benefit, there's a security benefit, there's a latency benefit, and there's a huge cost benefit. When you purchase a device, the computing capabilities are already available on that device and you can actually run your use cases for free on an incremental basis.
And Qualcomm is uniquely positioned to make that happen.
That's why this is incredibly exciting, it's the beginning of a new chapter for us.
Akash, nice to meet you.
Thank you for your participation.
Nice to meet you too.
thank you very much.
