Qualcomm (QCOM) will power Microsoft’s (MSFT) next generation of Windows PCs with its artificial intelligence chips. Qualcomm COO and CFO Akash Palkhiwala joins Market Domination Overtime to unpack the company’s latest AI moves.
Palkhiwala explains that the Snapdragon Qualcomm has announced more than two dozen devices that will be supported by the chip, which will soon be available for consumers to purchase.
“We are uniquely positioned to be the primary beneficiary of that growth in AI PCs, and we have a chip that contributes significantly better than any of our competitors,” says Palkhiwala. He adds that as the market changes, Qualcomm has “an opportunity to be a leader,” explaining that this is “the beginning of a new chapter.”
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Melanie Riehl
Video transcription
To up its AI game, the company wants to power Microsoft’s next-generation Windows P CS with its AI chips.
That announcement comes today at that Microsoft event our Dan told us about earlier.
Join us now to discuss Q Chief Financial Officer and Chief Operating Officer A CPA.
It’s nice to see you again.
Thanks for being here, great to be here Julie, how are you?
I am fine.
Thank you.
I’m looking forward to checking out and testing out this new um P CS.
Uh, what are the snapdragon chips that go into this P CS?
What possibilities will we see from this new generation?
Yeah, so first of all, we’re very excited about today’s announcement. Microsoft talked about the next generation of P CS with copilot and introducing some incredible A IX experiences for the consumers in the devices.
And so we are really looking forward to the submitted devices.
Um. What Qualcomm brings to the device is a specific chip that we built for this purpose.
It’s called the Snapdragon Exit Chip and shows three major new areas.
The first is the best in its class and surpasses all other PCs in terms of performance.
The second is very, very good battery life.
It shows a very long battery life, extended several times, up to more than 20 hours.
And this isn’t something PCS has had before.
And then the third is this incredible set of AI experiences that Microsoft outlined today. Available only on Qualcomm Snapdragon exo devices, we have announced more than twenty devices in the near future, all supported by our chip, which will be available to consumers soon. to buy.
And you know, we’ve talked a lot about the huge demand that we’re seeing for all these kinds of AI chips from you and your competitors.
There was a comment today from one of Microsoft’s executives that the company expects to purchase more than 50 million A IP CS in the next year.
What does this mean for Qualcomm’s revenue and operating profit?
Those kinds of demands?
Yes, I think it’s an incredible opportunity for us.
We are uniquely positioned to be the primary beneficiary of that growth in A IP CS.
And we have a chip that makes a significant contribution to all our competitors.
So we are looking forward to it.
We think the PC is in the early innings of this uh new uh new generation, the new form factors, the new performance factors.
And Qualcomm is the one making this possible together with Microsoft Akash.
Can you give me figures on that?
About what, what contribution might you see to sales this year?
I think we are at the beginning of a very long run for the company.
This is a huge silicon market and it’s not often in our generation that you enter a new market like this, i.e. at this scale with a unique performance benefit product that is leadership and will continue to be leadership for a long time. time.
So we’re looking at and on a similar front you talked about your offering versus your competitors.
So if we expect this kind of growth in the PC market, what market share do you expect to gain, for example from the Intel and AM DS of the world, which also make chips that power PCs?
Yes.
II I think the way to think about it 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 another set of numbers, and we’ll see how it works out.
But I really think we have the best product on the market and we have this opportunity to be a leader in a new market beyond what we’ve already done in smartphones and in automotive and Xr and other areas.
Well, and when we talk about all the areas where you have money, you know, I have to, I have to admit, we talk about NVIDIA a lot on this show, right?
It is of great importance to investors.
Now how are we supposed to think about the Chip universe when people are so focused on NVIDIA, how are they supposed to think about a Qualcomm and its role in this whole AI revolution?
Yeah, I think that’s a great question when you think about AI: it first started in the cloud.
And as you know, we don’t really have a presence on the cloud side, but we are the clear leader in devices and what we see happening.
And today’s event from Microsoft was actually the beginning of that change, which is that we’ll see the migration of AI from the cloud happening on-device in addition to the cloud.
And the PC is just the first device where Qualcomm is making this possible.
And we see that we see the benefit of it, but you’ll see it happen on phones, tablets, industrial devices in the automotive industry, and Qualcomm will enable it for all of these things.
And the way to think about AI on devices is basically, it’s something that enables use cases that can’t happen in the cloud because it has privacy benefits, security benefits, latency benefits and has a very significant cost benefit because once you buy it device, the compute capabilities are already available on the device and you can really run use cases on an incremental basis for free.
And Qualcomm is uniquely positioned to make that possible.
And that’s why this is incredibly exciting and it’s the beginning of a new chapter for us.
Akash, nice to see you.
Thank you for joining us.
Nice to see you too.
Thank you.