Dell CEO Hails "Undeniable" PC Refresh Cycle, Fueled by AI and Windows 10 End-of-Life

A long-anticipated PC refresh cycle is now "undeniably" underway, according to Michael Dell, Chairman and CEO of Dell Technologies. Speaking on CNBC's "Mad Money," Dell pointed to a combination of aging hardware, the rise of AI-powered PCs, and the approaching end-of-life for Windows 10 as key drivers for a resurgence in PC sales.

"There's a large installed base," Dell stated, referring to the estimated 1.7 billion PCs currently in use worldwide. "We're seeing it definitely start."

This optimistic outlook contrasts with recent sluggishness in the PC market, which has seen declines following the pandemic-era boom. Dell's Client Solutions Group (CSG), the company's largest business unit, reported a 5% revenue increase in the fourth quarter of fiscal 2025, falling short of market estimates due to a weak market environments.

AI PCs: A Catalyst for Upgrades

The emergence of AI-powered PCs is a major factor driving the anticipated refresh. These new PCs, equipped with specialized chips designed to accelerate AI workloads, offer enhanced performance and capabilities that are increasingly attractive to both consumers and businesses.

Dell is positioning itself at the forefront of this trend. The company announced a new "Pro Max" system portfolio at Nvidia's GTC 2025 conference, including workstations featuring Nvidia's GB10 and GB300 Grace Blackwell Ultra Desktop Superchips. These chips offer massive processing power for AI development and other demanding tasks. The Pro Max with GB300, for instance, is powerful enough to train models with up to 460 billion parameters.

"(The GB10 chip) is also going to be in the Dell Pro Max notebook and desktops," Dell highlighted in the interview, emphasizing the integration of AI capabilities across Dell's product line.

Windows 10 End-of-Life: A Ticking Clock

Another significant factor driving the refresh cycle is the approaching end-of-life for Windows 10, scheduled for October 2025. This deadline will force many businesses to upgrade their hardware to remain compliant and secure. With a substantial portion of the 1.7 billion PCs in use likely running older operating systems, the transition to Windows 11 (or later versions) is expected to be a major catalyst for PC sales.

Challenges and Outlook

While the outlook for the PC market appears brighter, challenges remain. The initial costs of AI PCs may be a barrier for some consumers, and the overall economic climate could still impact purchasing decisions.

Nevertheless, Michael Dell remains optimistic. He sees the combination of aging hardware, the allure of AI capabilities, and the Windows 10 deadline as a powerful trifecta that will drive a significant PC refresh cycle in the coming years. He finished his interview with Jim Cramer, by stressing that he believes this will "ultimately drive incredible growth" for the overall economy.