by Qualcomm ( QCOM ) is poised to power the next generation of Microsoft ( MSFT ) PCs with its artificial intelligence chip. Qualcomm COO and CFO Akash Palkhiwala joins Market Domination Overtime to break down the company’s latest AI moves.
Palkhiwala explains that the Snapdragon X Elite chip will have three key new areas: “best-in-class” processing, long battery life, and “an incredible suite of AI experiences.” Qualcomm announced more than 20 devices enabled by the chip, which will soon be available for consumers to buy.
“We are in a unique position to be the main beneficiary of that growth in personal computer AI, and we have a chip that significantly outperforms any of our competitors,” says Palkhiwala. He also says that as the market shifts, Qualcomm has “an opportunity to be a leader,” and explains that it 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 transcript
Looking to step up its AI play, the company is set to power Microsoft’s next-generation Windows PC with its AI chip.
That announcement coming today at the Microsoft event that our Dan, as he told us earlier.
Join us now to discuss Q Chief Financial Officer and Chief Operating Officer A CPA.
It’s great to see you again.
Thanks for being here, great to be here, Julie, how are you?
I am doing well.
Thank you.
I’m excited to lay my eyes on these new PCs and test them out.
Uh What snapdragon chips are going into these PCs?
What kind of capabilities will we see from this new generation?
Yes, so first of all, we are very excited with the announcement today, Microsoft talked about the next generation of P CS with copilot plus introducing some incredible A IX experiences for the consumers into the devices.
And so we’re really looking forward to hosting those devices.
Um Cad is a special chip that Qualcomm brings to the device that we built for this purpose.
It’s called the snapdragon exit chip and it features three new key areas.
The first one is the best-in-class processing that outperforms all other P CS in terms of performance.
The second battery life is very good.
It shows a very long battery life, uh extended several times, extending more than 20 hours.
And this is not something that P CS has had before.
And the third is this incredible suite of AI experiences that Microsoft today announced is available for the foreseeable future only on Qualcomm Snapdragon exo devices, we announced more than 20 devices enabled by our chip that will soon be available to consumers. Buy.
And you know, we’ve been talking a lot about the huge direct demand that we’re seeing for all these types of AI chips from you and your competitors.
There was a comment today from one of Microsoft’s executives that the company expects to buy more than 50 million A IP CS in the next year.
What does this mean for Qualcomm’s sales and bottom line?
Such a claim?
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 significantly outperforms any of our competitors.
So we look forward to it.
We think the computer in this first innings is uh new uh new generation, the new form factors, the new performance factors.
And Qualcomm is the one making it happen along with Microsoft Akash.
Can you give me any numbers around it?
About what, what contribution are you going to see maybe to sales this year?
I think we are at the forefront for a very long time for the company.
This is a huge silicon market and it’s not often in our generation that you get to enter a new market like this, that is at this scale with a unique performance advantage product that is leadership and will be sustained leadership for a long time. time.
So we’re looking for and on similar, you talked about your offers compared to your competitors.
So if we expect this kind of growth in the PC market, um what kind of market share do you expect to take, say from Intel and AM DS of the world who also make chips that power PC CS?
Yes.
II I think the way you should think about it is that the market transition is happening and Qualcomm is positioned to be the leader in the new computer.
And, and that’s actually you can extrapolate that into a different set of numbers and we’ll see how it plays out.
But I really think that we have the best product in the market and uh and we have this opportunity to lead in a new market beyond what we’ve already done in uh in smartphones and in cars and in Xr areas and another.
Well, and talking about all the areas where you’re in cash, you know, I have to, I have to admit to you, we talk a lot about NVIDIA on this show, right?
It is attractive to investors.
Um How should we be thinking about the chip universe right now when people are so focused on NVIDIA, how should they be thinking about Qualcomm and their role in this whole AI revolution?
Yeah, I think that’s a great question if you think about AI, it started in the cloud first.
And as you know, we don’t have much of a presence on the cloud side, but we’re the clear leader on the device and what we’re seeing happening.
And, and today’s event from Microsoft was really the beginning of that change is that we will see the migration of AI from the cloud as well as the cloud to happen on the device as well.
And, and the PC is just the first device to be Qualcomm enabled.
And we see we’ll see the benefit of it, but you’ll see it happen on phones, tablets, automotive industrial devices, and Qualcomm will be enabling it across all of these things.
And the way to think about uh on an AI device is really, it’s something that enables use cases that can’t happen in the cloud because it has privacy benefits, security benefits, latency benefits and it has a very significant cost benefit because once. Buy the device, uh the compute capability is already available on the device and you can run use cases for free really incrementally.
And, and Qualcomm is uniquely positioned to achieve that.
And that’s uh that’s why this is really exciting and, it’s the beginning of a new chapter for us.
Akash, great to see you.
Thank you for joining us.
Great to see you as well.
Thank you very much.
