Reporter: Song Jianan
Right after Hong Kong markets opened on May 29, Lenovo Group (00992.HK) saw its shares jump sharply — at one point climbing nearly 30% to hit 25.7 Hong Kong dollars, yet another all-time high, pushing its total market cap past 300 billion HKD.
At the time of writing, Lenovo’s stock had eased back a bit to 24.24 HKD, but it was still up over 20%, with trading volume hitting 6.52 billion HKD.
This isn’t some short-term money play — it’s a continuation of a recent uptrend. Ever since Lenovo released its latest fiscal-year results on May 22, the stock has been notching new highs for days on end, gaining more than 72% in just over a week. For May alone, the rally was a whopping 93%, lifting the share price to a whole new level.
Lenovo’s fiscal 2025/26 report showed overall performance beating market expectations across the board. Full-year revenue hit $83.1 billion — about 562.7 billion yuan — up 20.3% year on year, marking the first time revenue broke through the half-trillion yuan mark. Adjusted net profit came in at $2 billion, a 42.1% increase, with profit growth clearly outpacing revenue growth.
Breaking it down by quarter, the fourth fiscal quarter really stood out: single-quarter revenue of $21.6 billion, up 27% year on year — the fastest quarterly growth in five years. Adjusted net profit hit $559 million, more than doubling year on year.
On the business structure side, all three core segments — Smart Devices, Infrastructure Solutions, and Solutions & Services — turned a profit this fiscal year, signaling that Lenovo’s long-running diversification push has crossed a key milestone.
AI became the biggest growth driver. During the fiscal year, Lenovo’s AI-related revenue doubled, soaring 105% and accounting for 33% of total revenue. In the fourth quarter, AI kept up its high-growth momentum with 84% year-on-year revenue growth, pushing its share to 38%. Lenovo’s AI business now spans AI PCs, AI servers, industry solutions, and more, gradually reducing its reliance on traditional PCs alone.
In the earnings call, Lenovo Chairman and CEO Yang Yuanqing said AI infrastructure is exploding, with the shift from training to inference happening super fast. Right now, 70% to 80% of AI infrastructure GPU servers are used for training, only 20% to 30% for inference. He expects that to flip — 70% for inference and 30% for training — but that doesn’t mean the need for training infrastructure will shrink. It’ll keep growing, and big cloud service providers alone won’t be enough to meet demand.
Lenovo Senior Vice President and CFO郑孝明 (Zheng Xiaoming) added, “We earned $200 million in operating profit this quarter — that’s a key inflection point.” He also noted that global capital spending on AI infrastructure isn’t just in North America or China; there are plenty of opportunities in the Middle East, India, Europe, and elsewhere.
Looking ahead to next fiscal year, Yang Yuanqing predicted in the earnings call that AI PCs will account for more than 50% of total PC sales, AI servers will be a strong growth engine, and AI solutions and services — especially custom-tailored ones — will grow very fast.
“We’re confident we can grow overall company revenue to over $100 billion within two years at most, and further improve profitability,” Yang said.
After the earnings release, major institutions turned bullish on Lenovo’s AI transformation and earnings recovery. CICC raised its profit forecast for fiscal 2027/28, maintained an outperform rating, and bumped its target price up 35% to 20 HKD, noting that the Infrastructure Solutions business turning profitable is key to the company’s valuation re-rating.
Everbright Securities upgraded Lenovo to Buy, saying the infrastructure business is entering a profit release cycle and the high boom in AI servers will keep driving earnings growth. Goldman Sachs also dramatically adjusted its view, raising its target price from 12.53 HKD to 27 HKD — a 71% jump — and maintained a Buy rating, citing a big leap in unit prices for high-end AI server products.
Beyond that, multiple financial institutions like UOB Kay Hian, DBS Bank, and CLSA followed suit with upgrades. Most mainstream targets now fall between 20 HKD and 27 HKD. In the last 90 days, over 60% of research institutions gave the stock a Buy rating — a clear consensus of optimism.
Guosheng Securities pointed out that Lenovo has effectively entered the global AI infrastructure leader board, with its valuation anchor shifting from “PC cycles” to “AI infrastructure.” Compared to Dell, there’s still plenty of room. Dell currently trades at 34x PE, while Lenovo trades at just 15x PE.
Zooming out to the broader industry: global demand for AI computing power keeps expanding, and the AI device and AI server markets are in high-growth mode. Gartner data shows that global AI PC shipments are expected to hit 143 million units in 2026, with a penetration rate of 54.7%, overtaking traditional PCs for the first time. IDC also forecasts that China’s AI PC shipments in 2026 will surge 146.5% year on year, with penetration breaking 52%.
In the future Yang Yuanqing paints, AI PCs are evolving from traditional computing tools into personal AI gateways — “a PC in every hand” is slowly becoming “every agent needs its own AI device.” To that end, Lenovo is pushing its personal super agents like Tianxi and Lenovo Qira across platforms and devices to cover more endpoints, while also exploring next-gen AI-native device forms like new AI PCs, AI phones, AI wearables, and personal computing edge hubs.
On the server front, enterprise AI apps are gradually shifting from public clouds to edge and on-premise data centers, reshaping market demand. As a tech company covering personal devices, computing hardware, and industry services, Lenovo is riding the wave of AI’s mass adoption, creating a dual-engine growth model powered by both devices and computing.
