Shares in Lenovo surged on Friday after the Chinese technology giant reported record earnings, driven by a sharp rise in artificial intelligence-related revenue that is reshaping its growth trajectory.
The stock climbed more than 15 percent in Hong Kong trading following results that showed the world’s largest personal computer maker delivered its strongest annual performance on record.
Group revenue for the March quarter reached US$21.6 billion, up 27 percent year-on-year the fastest growth rate in five years while net income rose nearly six-fold to US$521 million.
The strong performance was fuelled by rapid expansion in artificial intelligence-linked products and services, which have become central to the company’s long-term strategy.
AI-related revenue surged 84 percent in the fourth quarter, accounting for more than a third of total group sales, underscoring the speed at which the sector is transforming Lenovo’s business mix.
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The category includes a wide range of products and services, from PCs and smartphones equipped with neural processing capabilities to data centre servers powered by graphics processing units, as well as enterprise AI solutions.
The results highlight the growing importance of artificial intelligence across the global technology sector, where firms are racing to integrate machine learning capabilities into both consumer devices and corporate infrastructure.
Chairman and Chief Executive Officer said the company aims to evolve into a US$100 billion business within the next two years, with AI forming the core pillar of its expansion strategy.
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Lenovo’s current market capitalisation stands at about US$24 billion, meaning the target represents a significant scaling-up of its global operations.
The company’s “hybrid AI” strategy combines personal AI embedded in devices with enterprise AI solutions designed to help corporate clients extract insights from data and improve operational efficiency.
Analysts say the strategy reflects a broader industry shift in which hardware manufacturers are increasingly moving into software and services to capture higher-margin revenue streams.
Lenovo also retained its position as the world’s leading PC vendor during the quarter, holding a global market share of 24.4 percent, according to company data.
The strong results come amid a broader rebound in demand for personal computers, driven in part by businesses upgrading systems to support AI workloads and more advanced computing applications.
Industry observers note that AI-enabled devices are becoming a key growth driver in the PC market, helping to offset previous years of sluggish demand caused by pandemic-era saturation.
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Lenovo’s performance also reflects intensifying competition in the global technology sector, where major firms are investing heavily in AI infrastructure, chips and cloud services.
The company’s strong earnings have boosted investor confidence in its ability to compete in the rapidly evolving AI landscape, even as geopolitical tensions and supply chain uncertainties continue to affect the wider tech industry.
For now, analysts say Lenovo’s results underline how deeply artificial intelligence is reshaping corporate valuations, product strategies and global technology leadership.
