Ahead of AMD’s October launch of Instinct MI325X, the U.S. chip giant is said to have several issues with its laptop OEMs, which results in poor execution, a report by Tom’s Hardware notes. Citing remarks from analysts, the report describes the two parties’ relation now as a “Cold War ice age,” hurting their mutual trust.

The report, citing AC Analysis, says that the main contradiction arises from AMD’s current strategy of prioritizing enterprise chips over consumer products, with laptop OEMs complaining about the “miscommunication, unfulfilled promises, and generally poor treatment.” The situation, according to them, is similar to Intel’s behavior during its peak years.

It is interesting to note that the situation seems to coincide with AMD CEO Lisa Su’s recent exclamation that AMD is a “data center-first company,” as data center contributed to over 50% of the company’s revenue last quarter.

Another report by German media outlet ComputerBase also reports that AMD is still suffering from the same challenges it has had in the past. For instance, problems with supply and related issues have delayed the release of new Strix Point laptops. According to ComputerBase, one source even accused AMD of probably leaving billions of US dollars on the table with its partners over the years.

Tom’s Hardware observes that due to the aforementioned reasons, the reaction of AMD’s Strix Point chips among OEMs has been somewhat tepid, despite consumer interest.

The report notes that currently, BestBuy offers only three brands with AMD’s latest chips—Asus, HP, and MSI. HP and MSI each have one model, while Asus has 13 models featuring the AMD Ryzen AI 300 series chip.

This is in sharp contrast with Qualcomm, the report notes. Even the company is a latecomer in the laptop market, the smartphone chip giant’s launch of the Snapdragon X processor generated significant excitement among both the public and laptop manufacturers, as seven brands have already released 12 different models featuring the new Arm chip.

AMD is also lagging behind its rival Intel, which still dominates the laptop market despite its recent slump. According to Intel, its Lunar Lake, manufactured with TSMC’s 3nm, is expected to power more than 80 new laptop designs across more than 20 original equipment manufacturers, delivering AI performance at a global scale for Copilot+ PCs.

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(Photo credit: AMD)

In late March, NVIDIA CEO Jensen Huang personally delivered the first high-end DGX H200 AI server to customer OpenAI. According to a report from Commercial Times, following this, the upstream chips for the H200 AI-GPU entered mass production in late Q2, with large-scale deliveries expected from Q3 onwards.

Downstream companies, including Inventec, Quanta (QCT), Hewlett Packard Enterprise (HPE), Supermicro, and Lenovo, have reportedly listed the H200 products as ready for shipment, with deliveries anticipated to begin in the second half of the year.

The same report, citing sources, indicates that current pending orders are still largely focused on the H100 in the HGX architecture, with the H200’s share remaining limited. The H200 shipments expected in Q3 will primarily be NVIDIA’s DGX H200. As for the B100, there is already some visibility, with shipments expected in the first half of next year.

Despite the CoWoS production capacity catching up and a significant easing in the supply of AI GPUs, due to the allocation system, the delivery time for the main H100 GPU shipments from various end-system partners can still reach up to 20 weeks.

However, major Taiwanese manufacturers such as Quanta, Inventec, Wistron, Gigabyte, and ASUS have seen a substantial boost in their overall server operations, driven by AI server business in the first half of the year. They are reportedly optimistic about AI server shipments in the second half of the year, expecting strong demand to continue, making the server business effectively free from any off-season throughout the year.

Among them, Wistron holds a significant advantage in the production and supply of H100 series substrates and the subsequent B100 series GPU modules and substrates. Starting from the second quarter, Wistron’s AI server-related business has shown high visibility, providing strong support for its overall operations.

On the other hand, the H20 series, an AI chip tailored for China due to U.S. chip restrictions, has also seen demand in the Chinese market. As NVIDIA recently secured a rush order for the H20 series, Taiwanese companies, including Wistron and Inventec, are expected to benefit.

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(Photo credit: NVIDIA)

Last year, Qualcomm entered the PC market, sparking an AI PC frenzy in collaboration with Microsoft Copilot+. According to Qualcomm CEO Cristiano Amon, beyond mobile devices, PCs, and automotive applications, Qualcomm is now focusing on data centers. In the long term, these products will eventually adopt Qualcomm’s in-house developed Nuvia architecture.

Amon pointed out that as PCs enter a new cycle and AI engines bring new experiences, just as mobile phones require slim designs but must not overheat or become too bulky, Qualcomm has always been focused on technological innovation rather than just improving power consumption. While traditional PC leaders may emphasize TOPS (trillions of operations per second), energy and efficiency are also crucial.

Amon stressed the importance of maintaining battery life and integrating functionalities beyond CPU and GPU, which he believes will be key to defining leadership in the PC market. He also joked that if you use an X86 computer, it would run out of battery quickly, but with a new computer (AI PC) next year, it would last a long time without draining power.

Amon noted that Qualcomm’s Snapdragon X Elite and Snapdragon X Plus have been developed with superior NPU performance and battery life. Moreover, Snapdragon X Elite is just the first generation, which focuses more on performance supremacy, while the upcoming generations may put more emphasis on computational power, and integrating these into chip design.

Currently, more than 20 AI PCs equipped with Snapdragon X Elite and Snapdragon X Plus have been launched, including models from 7 OEMs, such Acer, Asus, Dell, HP, and others.

Amon believed that the market penetration rate will continue to increase next year. He sees AI PCs as a new opportunity, suggesting that it may take some time for them to be widely adopted when a new version of Windows for PC market emerges. However, considering the end of Windows 10 support, users can transition to new models with Copilot+, which he believes will be adopted much faster.

Amon pointed out that NPUs have already demonstrated their advantages in the PC and automotive chip industries, and these capabilities can be extended to data centers or other technologies.

He then highlighted data centers as a significant opportunity for transition to Arm architecture and expressed belief in increased opportunities for edge computing in the future. Amon also mentioned the adoption of Nuvia architecture in smartphones, data centers, and automotive industries. Additionally, he disclosed plans to launch mobile products featuring Microsoft processors at the October Snapdragon Annual Summit.

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(Photo credit: Qualcomm)

During NVIDIA founder and CEO Jensen Huang’s keynote speech on June 2, he shared insights on how the AI era is driving the development of a new global industrial revolution.

According to a report from TechNews, he covered various technologies and application areas, including advancements in accelerated computing, microservices, industrial digitalization, and consumer devices, which are expected to become key focus areas in the evolving AI market.

• Accelerated Computing

1. Collaboration between the computer industry and NVIDIA to build AI factories and data centers: NVIDIA and leading computer manufacturers worldwide announced today the launch of a series of systems based on the NVIDIA Blackwell architecture. These systems feature Grace CPUs, NVIDIA networking technologies, and infrastructures to assist enterprises in establishing AI factories and data centers.

2. Foxconn utilizes NVIDIA artificial intelligence and Omniverse technology to train robots and streamline assembly operations: Foxconn operates over 170 plants worldwide, with its latest being a virtual plant driving the latest developments in industrial automation technology.

The latest of Foxconn’s plant is a digital twin model of a new factory in Guadalajara, Mexico, a hub for the electronics industry. Engineers at Foxconn define processes and train robots in this virtual environment to enable physical factories to efficiently produce the next generation of accelerated computing engines, the NVIDIA Blackwell HGX system.

3. NVIDIA significantly strengthens Ethernet networks for generative artificial intelligence: NVIDIA announced widespread adoption of the NVIDIA Spectrum-X Ethernet platform and will accelerate the release of new products. CoreWeave, GMO Internet Group, Lambda, Scaleway, STPX Global, and Yotta are the first batch of AI cloud service providers to adopt NVIDIA Spectrum-X, bringing ultimate network performance to their AI infrastructure.

Additionally, NVIDIA’s partners have also released products utilizing the Spectrum platform, including ASRock Rack, ASUS, GIGABYTE Technology, Ingrasys Inc., Inventec, Quanta Cloud Technology, Wistron and Wiwynn. Moreover, Dell Technologies, Hewlett Packard Enterprise, Lenovo, and Super Micro Computer have collaborated with NVIDIA to incorporate the Spectrum platform into their respective products.

• Microservices

NVIDIA NIM has revolutionized deployment model: NVIDIA has announced that its inference microservice, NVIDIA NIM, optimized in container form, is now available for download by 28 million developers worldwide.

This allows deployment to cloud, data centers, or workstations, enabling developers to effortlessly build generative artificial intelligence applications for assisting partners, such as copilots and chatbots, within minutes, a process that previously took several weeks.

• Industrial Digitalization

1. Electronics manufacturers adopt NVIDIA AI and Omniverse to drive robotic factories and accelerate industrial digitization: NVIDIA announced that major Taiwanese electronics manufacturers, including Delta Electronics, Foxconn, Pegatron Corporation, and Wistron Corporation, are using NVIDIA’s technology to transform their factories into more autonomous production facilities through new reference workflows.

This workflow combines NVIDIA Metropolis visual artificial intelligence (AI) technology, NVIDIA Omniverse’ physically accurate rendering and simulation technology, and NVIDIA Isaac’s AI robot development and deployment technology.

2. Industry leaders adopt NVIDIA’s robotic technology to develop tens of millions of AI-supported autonomous machines, including BYD Electronics, Siemens, Teradyne Robotics, and Alphabet’s Intrinsic, among more than ten global leading companies in the robotics industry.

These companies integrate NVIDIA Isaac acceleration libraries, physically principled simulation content, and AI models into their software frameworks and robot models to enhance efficiency in factories, warehouses, and distribution centers. This enables human colleagues to work in safer environments and serves as intelligent assistants in executing repetitive or ultra-precise tasks.

3. NVIDIA introduces NVIDIA IGX with Holoscan support, enabling enterprise software to run medical, industrial, and scientific artificial intelligence applications in real-time at the edge: To meet the growing demand for real-time artificial intelligence computing technology at the industrial edge, NVIDIA announces the comprehensive launch of NVIDIA AI Enterprise-IGX software with Holoscan on the NVIDIA IGX platform.

• Consumer Devices

1. NVIDIA utilizes GeForce RTX AI PC to deliver the real AI assistant experience: NVIDIA announces the launch of the new NVIDIA RTX technology, designed to support AI assistants and digital human platforms running on new GeForce RTX AI laptops.

2. NVIDIA introduces Digital Human Microservices to lay the foundation for future generative AI digital avatars: NVIDIA announces the comprehensive rollout of NVIDIA ACE generative artificial intelligence microservices to accelerate the development of the next wave of digital humans and numerous breakthroughs in generative AI soon to be introduced on the platform.

Companies in customer service, gaming, and healthcare sectors are among the first to adopt ACE technology, making it easier to create, personalize, and interact with realistic digital humans. These microservices have broad applications in customer service, telehealth, gaming, and entertainment.

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(Photo credit: NVIDIA)

The global laptop and PC market is gradually recovering, coupled with the rising trend of AIPC. Laptop brands, including Acer and ASUS, as well as major contract manufacturers like Foxconn and Quanta, have all released positive outlooks for 2024.

Semiconductor giants such as Intel, NVIDIA, AMD, Qualcomm, and others actively entered the AI PC chip market in the second half of 2023, positioning themselves strategically. Both laptop brands and terminal manufacturers have expressed expectations for this development.

Acer

Jason Chen, Chairman and CEO of Taiwan-based computer manufacturer Acer, stated on November 30th that they are currently tallying the sales performance of Acer during Black Friday and Cyber Monday, and the current results are satisfactory. Looking ahead to the PC industry next year, from an overall economic perspective, there are still many uncertain factors, but it appears to be better than this year.

Chen further pointed out that the impact of the pandemic has passed, inventory digestion has also concluded, and entering the traditional seasonal performance, the specific application of generative AI will bring a new wave of demand stimulation.

Regarding AI PCs, Chen emphasized that the transition to AI PCs will be a gradual process rather than a sudden occurrence. He anticipates this transformation will take place in both commercial and consumer markets in the future.

ASUS 

According to UDN’s report, ASUS, another major Taiwanese laptop manufacturer, emphasized the significance of AI PCs during its November investor conference. Co-CEO, S.Y. Hsu, highlighted that AI PCs represent a crucial turning point for the industry, promising a significant improvement in user experience and ushering in a new era for the PC industry.

While he acknowledged that consumer acceptance of AI PCs would take time to increase, he predicted that the penetration rate of AI PCs would reach single digits in 2024 and double digits in 2025, depending on the user experience and technological maturity of AI PCs next year.

Foxconn

For Taiwanese electronics contract manufacturer Foxconn, the outlook for the PC industry in the coming year is described as “very good” by Chiang Chih-Hsiung, General Manager of the B Group and Digital Health at Foxconn.

This indicates Foxconn’s positive expectations for performance in the PC-related industry. Foxconn had previously emphasized that, in addition to AI servers, it would collaborate with customers to expand its presence in the AI PC sector in 2024.

Quanta

In a public interview on November 30th, Chairman Barry Lam of Taiwanese electronics manufacturer Quanta discussed the overall outlook for the next year, emphasizing the role of generative AI in shaping future technological developments.

With the rapid growth in AI computing power demand, the market conditions for next year are quite optimistic. Lin is particularly bullish on the future prospects of three major products: AI PC, AI servers, and AI automotive electronics, with a special emphasis on the significant growth potential of AI PCs.

Quanta is optimistic about the growth momentum in this sector, especially with Microsoft set to launch the latest Windows featuring AI functions next summer. Quanta envisions continued collaboration with GPT in the future for PCs.

TrendForce’s Insight

TrendForce reports the global shipment of notebooks is expected to reach 167 million units in 2023—a YoY decrease of 10.2%. However, with inventory pressures easing, the notebook market is anticipated to return to a balanced supply and demand cycle in 2024. Overall shipment volume is forecast to reach 172 million units, marking a YoY increase of 3.2%.

As for AI PC, TrendForce believes that due to the high costs of upgrading both software and hardware, early development will be focused on high-end business users and content creators. This targeted group has a strong demand for leveraging AI processing capabilities to improve productivity efficiency and can also benefit immediately from related applications, making them the first-generation primary users.

The emergence of AI PCs is not expected to necessarily stimulate additional PC purchase demand. Instead, most upgrades to AI PC devices will occur naturally as part of the business equipment replacement cycle projected for 2024.

Nevertheless, looking to the long term, the potential development of more diverse AI tools—along with a price reduction—may still lead to a higher adoption rate of consumer AI PCs.

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(Photo credit: Pixabay)