🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

Bank of America discusses implications of AI PC war on chipmakers

Published 21/05/2024, 19:02
© Reuters.
INTC
-
AMD
-
ARM
-

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."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.