The world of personal computing is on the verge of a significant transformation, one driven by artificial intelligence (AI) technology. As tech companies race to capture the opportunity, HP Inc. has emerged as a key player with its own vision for how AI will reshape the PC market.

Recently, Enrique Lores, CEO of HP Inc., sat down with CNBC’s Jim Cramer on “Mad Money” to discuss the company’s outlook, quarterly results, and, most importantly, the advent of the AI PC. Lores emphasized the value that these new machines will bring to both enterprise and consumer markets.

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Strategic Shift Toward AI-Driven PCs

As Lores detailed in his interview, the company’s focus on AI PCs is part of a deliberate strategy to diversify its offerings and capture emerging opportunities in computing. This effort marks a significant shift away from simply upgrading PC hardware towards integrating next-generation technologies. “We have been very consistent in what we have been saying about AI PCs,” Lores told Cramer. “They were going to have a small impact in ’24, more impact in ’25, and an even greater impact in ’26.” According to Lores, the company is betting on a gradual, phased adoption curve, with the commercial sector leading the way in adoption.

Unlike other technologies that typically find their first foothold among consumer audiences, the AI PC market will begin with enterprise users. “The penetration is going to start from the commercial side,” Lores explained. He believes this unique adoption path necessitates a higher level of education and marketing effort, with HP and its partners leading campaigns to showcase what these PCs can accomplish. “When we demonstrate what customers will be able to do, they really see the value, and they realize that this is the type of product that they want to have for their teams,” he added.

The Power of an AI-Driven Ecosystem

AI PCs differ from traditional devices because they are not just about faster processors or sharper displays—they offer entirely new forms of capability. As Lores highlighted, the machines will feature onboard AI that can handle tasks locally without offloading processing to the cloud, thanks to powerful local Machine Processing Units (MPUs). “We have started to launch some of the next-generation AI PCs, with powerful MPUs where you can run AI locally,” Lores said, adding that the initial feedback has been encouraging.

However, the company acknowledges that the AI PC revolution will not happen overnight. Lores compared the adoption path of AI PCs to the initial uptake of cloud computing. “We don’t think that we are talking about cloud or AI PCs—both things are going to coexist. There are activities that make sense to do at the edge, and make AI PCs suitable for that,” Lores said. He underscored that HP aims to create a balanced solution where both local AI processing and cloud capabilities can be leveraged to maximize productivity.

Productivity Gains and the Impact of AI PCs

Perhaps the most compelling argument for AI PCs is their ability to boost productivity, both for individuals and teams. The potential for applications that can analyze and respond in real-time is enormous. “We showed some of it when you were here,” Lores reminded Cramer, referring to a demo of their AI-driven features, “and we continue to be very confident in, really, the impact and the value that this category is going to have for us in the future.”

Unlike a standard PC, AI PCs can automate early-stage tasks like sifting through emails, capturing insights from video calls, and analyzing data on-the-fly—saving workers precious time. Lores noted that AI PCs have already begun to attract interest from major corporations. “We have large customers that have decided to adopt AI PCs as the PC for their full workforce,” Lores said. However, he noted that the rollout of these technologies will take time, primarily because applications need to be fully developed to harness these new capabilities effectively.

While HP’s vision has been optimistic, some other prominent figures in the tech world have been more skeptical about the value added by AI-driven features. Jim Cramer brought up Salesforce CEO Marc Benioff’s comments that AI copilot technologies, which assist users in performing tasks, have not added significant value yet. In response, Lores countered, “We have demonstrated what AI PCs can do. The value is there from a productivity perspective.”

Commercial Opportunities and Long-Term Growth

HP is optimistic about the long-term prospects of AI PCs, but Lores was also careful to temper expectations about the immediate impact. “It’s not necessarily a lower ramp, it’s a longer ramp,” he said, echoing a sentiment that HP expects steady, rather than explosive, growth in this category. “The more applications that will be available, the bigger the impact that AI PCs are going to have.”

When questioned about market positioning and the comparability of AI PCs to existing premium computing products, Lores stated, “It’s not only going to be about the performance of the PCs, it’s going to be about the capabilities and new metrics that customers are going to be able to do.” This is where AI becomes a differentiator—not in raw speed alone, but in how effectively it can manage processes and assist in decision-making.

The initial adopters of AI PCs are likely to be organizations looking for these competitive edges—boosted employee productivity, intelligent automation, and efficient workflows. This focus on the commercial side makes sense given the premium price tag of the first wave of AI PCs, as well as their ability to streamline operations in a way that adds direct business value.

Adapting Supply Chains Amid Global Challenges

Beyond AI PCs, Lores also discussed how HP is adapting to other challenges, including geopolitical tensions and tariff concerns, which could affect the company’s production. “China continues to be a big part of our manufacturing footprint, but we have been diversifying fairly aggressively the last three years because we realized that we needed to build a more resilient supply chain,” Lores explained. He emphasized that HP’s manufacturing is now more balanced across different geographies, making it better prepared for potential tariff changes. “If tariffs do happen, we will adjust,” he assured.

Looking Ahead: AI PCs as Part of a Broader Vision

HP’s cautious but confident approach to AI PCs reflects its broader strategy of blending innovation with practical business planning. The company is clearly positioning itself not just as a hardware manufacturer but as a provider of advanced solutions that can transform the way people work. As the PC market continues to evolve, HP’s efforts to integrate AI deeply into its products may well define its future.

The promise of AI PCs goes beyond the technology itself; it represents a shift in how we think about computing. By creating a machine that is not just a device but an intelligent partner, HP aims to redefine what a personal computer can be. “The value is there, from a productivity perspective,” Lores insisted, and while it may take some time to see widespread adoption, HP is clearly betting that AI PCs are the future of work.