Lenovo Group's Hong Kong-listed shares surged to a record high on Tuesday, propelled by quarterly results that outpaced analyst expectations. The world’s largest PC maker saw its stock rise 18% to HK$18.7, following a prior 20% gain on Friday after the company disclosed strong top-line growth.
The company reported that revenue for the March quarter climbed 27% to $21.6 billion. Net profit for the period increased sharply, up 479% to $521 million, according to the results released by the firm.
Segment performance
Lenovo’s infrastructure solutions business, which encompasses AI servers and data-center products, recorded the company’s fastest rate of revenue growth at 37% during the quarter. The company said demand for artificial intelligence computing underpinned that expansion.
AI-related revenue showed especially strong performance, rising 105% over the year and representing one-third of total group revenue. The company attributed this progress to growth across AI devices, infrastructure and services.
At the same time, the core division covering PCs, tablets and smartphones benefited from resilient consumer demand and gains in market share. The company noted that those gains came ahead of anticipated price increases tied to memory chip shortages.
Market reaction and context
Shares of Lenovo jumped to HK$18.7, marking their highest level on record. The two large moves in share price - a 20% rise on Friday and an 18% increase on Tuesday - underscore the market’s positive response to the quarterly figures and the company’s exposure to AI-driven sales.
Impacted sectors
- Technology hardware - driven by trends in AI servers and data-center equipment
- Consumer electronics - via PCs, tablets and smartphones
- Semiconductor supply chains - with memory chip shortages referenced as influencing pricing