Nvidia Corp. (NASDAQ:NVDA) upcoming N1X processor could ship in roughly 10 million devices over the next two years, but analyst Ming-Chi Kuo says the success of AI PCs will depend more on Microsoft Corp.'s (NASDAQ:MSFT) Windows than on Nvidia’s hardware.



<h2>N1X Processor To Create A Niche Market, Says Kuo</h2>



The N1X processor is expected to create a niche market, focusing on users who need advanced AI compute directly on their devices. However, the success of these shipments will largely depend on pricing and the ability of Windows to support applications that fully utilize on-device AI capabilities.



Currently, AI computing on PCs, whether Windows or Mac, primarily relies on cloud-based services. The N1X could give AI power users another option for running models locally, though Kuo cautioned that hardware alone is unlikely to drive a broader PC upgrade cycle, Kuo said in a post on X.



However, the operating system’s support is crucial for integrating AI into user workflows and maintaining data privacy, he added.



&#34;For power users running LLMs on-device, an N1X device is a solid alternative to the Mac when it comes to capable on-device AI compute and large memory. But if the goal is a real upgrade cycle, then beyond price, OS support (Windows) is still what matters,&#34; he added.



<figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x"><div>
<blockquote>Nvidia's Much-Anticipated, Reportedly Upcoming N1X / Windows PC Processor: Supply Chain Checks and Key Takeaways ▌Supply chain checks point to around 10M shipments of N1X-based devices over the next two years. ➡ Still a niche market, aimed at power users who need on-device AI…— 郭明錤｜Ming-Chi Kuo (@mingchikuo) May 31, 2026</blockquote>
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<h2>N1X Impact Will Depend On Windows' Ability To Support AI Features</h2>



While the N1X offers a promising option for AI power users, its impact on the broader market will depend on how well Windows can enhance its OS to support these advanced AI features, beyond just first-party app enhancements.



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The introduction of Nvidia’s N1X processor comes at a pivotal time as Nvidia and Microsoft prepare to launch the first Windows PC powered by Nvidia chips. This collaboration, set to be unveiled at the Computex trade show and Microsoft’s Build conference, aims to integrate Nvidia’s CPU business with its dominant GPU sector, which has seen an 85% revenue surge in the first quarter.



<h2>AAPL Making Waves With MacBook Neo</h2>



Meanwhile, Apple Inc. (NASDAQ:AAPL) is making waves with its MacBook Neo, priced at $599 and powered by the A18 Pro chip.



This device, designed to attract Windows PC users, is expected to reshape the low-cost laptop market and expand Apple’s ecosystem. Counterpoint Research predicts a significant increase in the sub-$700 market due to this move.



The competition between Nvidia’s on-device AI capabilities and Apple’s entry into the low-cost laptop segment highlights the evolving landscape of personal computing.



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Analyst Ming-Chi Kuo predicts Nvidia's N1X AI PC processor will ship ~10 million units over two years, targeting a niche market of power users. However, he emphasizes that true market success and a broader upgrade cycle depend critically on Microsoft Windows' ability to support on-device AI features, rather than hardware alone.

- Nvidia's upcoming N1X processor is expected to ship in around 10 million devices over the next two years, targeting users needing advanced on-device AI capabilities.  
- Analyst Ming-Chi Kuo emphasizes that the success of these devices will hinge on Microsoft's Windows support rather than Nvidia's hardware alone.  
- The integration of AI features into Windows is crucial for enhancing user workflows and data privacy, which may determine the broader impact of the N1X in the market.

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Nvidia's N1X AI PCs Could Ship 10 Million Units, But Windows Is Real Test, Says Ming-Chi Kuo: 'If The Goal Is A Real Upgrade Cycle…'