Lenovo, A Chinese Company, Reports A 43% Increase in Q1 Revenue Due To the Growth of AI Infrastructure
Lenovo Group (0992.HK), the largest computer manufacturer in the world, reported a 43% increase in quarterly revenue on Thursday, exceeding estimates and pushing shares up as much as 22%. The company is benefiting from a global shortage of memory chips and an AI hardware boom.
In the three months that concluded on June 30, Lenovo’s revenue increased to $26.94 billion, surpassing analyst projections of $22.3 billion, thanks to strong PC sales and demand fueled by artificial intelligence.
AI-related sales increased 60% year over year to $9.3 billion, accounting for 35% of overall revenue in the group’s fiscal first quarter, which was its largest quarterly revenue gain in the previous five years.
Chief Executive Yang Yuanqing told Reuters, “We successfully addressed it by accurately anticipating supply shortages and cost increases (of memory chips).”
He credited the company’s large, robust worldwide supply chains and its varied memory supply from South Korea, China, and the US for its performance.
He added, “I’m very confident in sustaining this growth momentum and driving long-term profitability,” noting that Lenovo is expected to generate $100 billion in revenue this fiscal year.
According to figures provided by LSEG, the corporation went from a profit of $505 million to a net loss attributable to shareholders of $609 million last year, in contrast to the average expert projection of $589 million profit.
According to the business, the $1.7 billion non-cash fair value loss resulting from the revaluation of warrants granted in 2025 was the main cause of the loss.
According to the earnings release, its AI server pipeline reached $54.0 billion, up 157% quarter over quarter, indicating demand from hyperscalers, AI cloud, and enterprise AI clients.
“It’s evident that we are emerging as a global leader in AI infrastructure as well,” Yang stated, expressing confidence in Lenovo’s ability to sustain its growth momentum driven by AI this year.
Prior to the results announcement on Thursday, Lenovo’s stock reached an all-time high, bringing its year-to-date gains to 225%.
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