AI-Enabled PCs Lift HP's Sales --- CEO of computer and printer maker sees trend extending into the next year

An AI PC is a personal computer designed with dedicated hardware, including a Neural Processing Unit (NPU), to run AI tasks locally and efficiently rather than relying solely on the cloud. Key features include improved local AI performance for tasks like image recognition and natural language processing, enhanced data privacy, and better system efficiency and battery life for sustained workloads. Major chip manufacturers like Intel and AMD are producing NPUs, and an operating system with AI integration and a dedicated AI button on the keyboard (like the Microsoft Copilot button) also define a true AI PC.

 

Key Components of an AI PC

 

    Neural Processing Unit (NPU):

 

A specialized processor that accelerates AI and machine learning computations, making them faster and more power-efficient than using a traditional CPU or GPU alone.

Central Processing Unit (CPU):

A high-performance CPU is still essential for fast response times in AI applications.

Graphics Processing Unit (GPU):

The GPU handles parallel processing and high-throughput AI tasks, especially for content creation.

High-Bandwidth Memory:

Necessary to efficiently move data between the CPU, GPU, and NPU for complex AI tasks.

 

Benefits of AI PCs

 

    Local AI Processing:

    AI tasks, such as real-time language translation and content summarization, can be processed on the device itself.

 

Enhanced Privacy & Security:

Keeping data local on the device increases user privacy and security by reducing the need to send sensitive information to the cloud.

Improved Performance & Efficiency:

NPUs offload AI workloads, leading to faster performance, increased battery life, and lower energy consumption for sustained AI tasks.

New AI-Powered Features:

AI PCs enable new AI-driven features in operating systems and third-party applications, such as intelligent camera filters and AI-assisted productivity tools.

 

Examples of AI PCs

 

    Microsoft's Windows AI PCs: These PCs must include an NPU and often feature a dedicated Copilot button on the keyboard, as seen in devices like the Surface Laptop 7.

 

Intel-powered AI PCs: Laptops and desktops featuring Intel Core Ultra processors with integrated NPUs, which offer enhanced AI performance and security.

 

AMD-powered AI PCs: Systems utilizing processors like the AMD Ryzen AI processors bring AI capabilities to a wider range of devices.

  

“HP's third-quarter sales got a boost from growing demand for its artificial-intelligence-enabled personal computers, a trend its chief executive expects to continue next year.

 

The computer and printer maker's AI PC sales continued to rise at a double-digit rate quarter to quarter, CEO Enrique Lores said, which helped the company post better-than-expected revenue.

 

Part of the accelerating adoption has been driven by a growing set of AI applications from software companies like Zoom and Adobe, he said.

 

"If you are buying a new PC now, you don't want to buy a PC that will not be able to take advantage of all these improvements that will continue to come to market in the coming months and years, so you better upgrade to an AI PC," Lores said.

 

The company's AI PCs have seen particularly strong demand from commercial customers looking to take advantage of productivity-focused applications, he said.

 

The segment has also gotten a boost from customers looking to upgrade aging PCs ahead of a transition to Windows 11 as Microsoft plans to stop supporting Windows 10 in October. The company estimates that just over half of the Windows 11 install base have made the transition so far.

 

Those trends should continue to help sales going forward, driving mid-single digit growth in the current quarter and into the next fiscal year, Lores said.

 

In the recent fiscal third quarter, HP posted a profit of $763 million, or 80 cents a share, up from $640 million, or 65 cents a share, a year earlier.

 

Adjusted per-share earnings came in at 75 cents, in line with analyst estimates, according to FactSet.

 

Revenue rose 3.1% to $13.93 billion, topping analyst projections for $13.69 billion.

 

Personal Systems revenue increased 6%, to $9.93 billion, offsetting a decline in printing sales, down 4% to $3.99 billion.

 

In the quarter, the company mitigated most of added costs from tariffs, Chief Financial Officer Karen Parkhill said. The company remains on track to fully mitigate all tariff-related costs by the end of the fiscal fourth quarter, and doesn't expect to raise prices again.

 

For the fourth quarter, HP said it expects adjusted earnings per share of 87 cents to 97 cents. Analysts polled by FactSet were looking for adjusted per-share earnings of 92 cents.” [1]

 

1. AI-Enabled PCs Lift HP's Sales --- CEO of computer and printer maker sees trend extending into the next year. Cloonan, Kelly.  Wall Street Journal, Eastern edition; New York, N.Y.. 28 Aug 2025: B3.