Recently, personal computer sales have been continuously declining. However, analysis suggests that this trend is expected to end next year, as AI chips begin to be integrated into new personal computers and laptops, rekindling consumers' upgrade interest. PC upgrades will also become the "next AI trade", with AI chips serving as digital assistants in the background and providing users with faster computing power. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.

Due to the demand for telecommuting caused by the COVID-19 pandemic, PC sales reached their peak at the end of 2021, but have since been sluggish, waiting for AI to save the day.$NVIDIA (NVDA.US)$CEO Huang Renxun previously stated at the Taipei International Computer Show that Nvidia has reached agreements with PC manufacturers ASUS and MSI to integrate AI chips into their new products.

Huang Renxun said that, "Your future laptops will constantly help you in the background, and personal computers will run AI-enhanced applications, from writing and photo editing to AI-driven digital assistants."

"Your future laptop will constantly assist you in the background, and personal computers will run AI-enhanced applications, from writing and photo editing to AI-driven digital humans," said Huang Renxun, chief executive of NVIDIA.

Asus and MSI have not provided a timetable for the launch of these new PCs and laptops. But once launched, they are expected to trigger a wave of AI PC upgrades and drive sales of technology hardware stocks.

Huang Renxun also said that Nvidia plans to upgrade its AI accelerator annually and announced that the Blackwell Ultra chip will be launched in 2025 and a next-generation platform named Rubin in 2026. Nvidia has also launched new tools and software models. He said that Nvidia regards the rise of generative AI as a new industrial revolution.

Goldman Sachs also predicted this in a research report entitled "The Next AI Trade: PC AI Upgrades". Goldman Sachs analyst Faris Mourad said that the technology hardware industry is preparing for a new takeoff after reaching its peak during the pandemic upgrade cycle. "During the pandemic, most employees working from home purchased equipment, which led the technology hardware upgrade industry to its peak. This cycle has completely ended and we have observed that the stock price of companies such as HPQ has reached nine times the expected earnings in 2025.

He expects that most of the PCs purchased during the pandemic will soon be replaced, and the upcoming PC and mobile device models will have new features, such as AI enhancement, improved security, and stronger computing power. "This will encourage American consumers to spend more money on new devices than ever before, creating an exceptionally strong cycle."

"This will encourage American consumers to spend more on new devices than ever before, creating an exceptionally strong cycle," he said.

Mourad revealed that Goldman Sachs has created a "New Device AI Upgrade Index" (GSXUPCAI) to help clients seize the opportunity of the AI PC upgrade cycle. The analyst said that the index consists of technology hardware stocks that may benefit from PC and mobile device upgrades and may include AI functions. The index can have a trading volume of up to 250 million U.S. dollars per day, and no individual stock accounts for more than 10% of the average daily trading volume.

Data shows that the GSXUPCAI is catching up to Goldman Sachs' AI software and hardware index (GSTMTAIP).

Compared to the Nasdaq and GSTMTAIP, the valuation of the New Device AI Upgrade Index (GSXUPCAI) is still the lowest, but the gap is narrowing.

Edited by Jeffrey