While the AI PC market faces challenges, the demand for high-bandwidth memory (HBM) remains strong, indicating continued interest in AI chips for data centers. Analysts suggest that the lack of demand for AI PCs and smartphones doesn't signal an impending collapse of the AI industry, as cloud-based AI services remain popular. The article concludes that while AI hardware may become standard in PCs, it won't be a significant selling point, and the AI industry's health will be better gauged by the demand for HBM and data center AI chips.
Key takeaways:
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- Micron's Q3 earnings and future guidance fell short of expectations, indicating a weaker market for memory products in PCs and smartphones.
- The anticipated AI PC and smartphone supercycle has not materialized, with reports suggesting that AI is not driving significant demand in these markets.
- Qualcomm's Snapdragon X chips for AI PCs are struggling in the market, with high return rates and low market share, prompting a shift to more budget-friendly options.
- While demand for AI on end-user devices is low, the market for high-bandwidth memory (HBM) for AI chips in data centers is growing rapidly, indicating continued demand for AI in the cloud.