Lenovo relies heavily on AI and significantly increases results

2/22/2025, 7:13 AM

Lenovo benefits from the new AI boom, significantly increases profits, and expects strong growth impulses in the PC business through AI models.

Eulerpool News Feb 22, 2025, 7:13 AM

Lenovo convinced its investors with unexpectedly good quarterly figures.

The core business, summarized in the Intelligent Devices segment (PCs, smartphones, and tablets), grew by 12 percent. Lenovo's focus on new AI-supported PC models is proving to be a growth driver: just in May, the company introduced the first "AI PCs" in China. CEO Yang Yuanqing sees great opportunities in this area and predicts that by 2027 up to 80 percent of notebook deliveries could be AI-capable.

Shares of the Hong Kong-listed group have surged by over 25 percent since the beginning of the year, fueled by the AI hype surrounding the Chinese pioneer DeepSeek. Analysts at UOB expect that more cost-effective AI solutions could motivate more companies – especially small and medium-sized ones – to invest in new computers and servers. Additionally, Lenovo's server and data center businesses led to a 59 percent increase in demand, significantly contributing to the segment's results. The smartphone division achieved double-digit sales growth, while the non-PC business now accounts for 46 percent of total revenue.

Lenovo emphasizes being better prepared for geopolitical turbulence through a broad geographic presence and a diversified supply chain. Last year, the company secured USD 2 billion from the Saudi sovereign wealth fund and agreed on a manufacturing venture for the Middle East. "With more efficient, cost-effective AI technologies, the demand for personalized and edge-based AI is growing," said Yang in a statement.

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