Lenovo shares jump 15% on record earnings as AI revenue nearly doubles

Lenovo's shares experienced a remarkable surge of over 15% on Friday, following the release of impressive revenue figures attributed to its expanding artificial intelligence division. For the March quarter, the company reported a group revenue of $21.6 billion, marking a significant 27% increase year-on-year — the fastest growth rate the Hong Kong-based multinational has seen in five years. Net income skyrocketed nearly sixfold, reaching $521 million, contributing to a record-setting full-year performance. A key highlight was the dramatic 84% increase in AI-related revenue during the fourth quarter, which now accounts for over one-third of Lenovo's total revenue. This category includes innovative products such as PCs and smartphones equipped with neural processing units, alongside servers featuring graphics processing units and various services. Lenovo's Chairman and CEO Yuanqing Yang expressed ambitions for the company to reach a valuation of $100 billion within the next two years, with a significant portion of this growth strategy relying on advancements in AI technology. Currently, Lenovo holds a market capitalization of about $24 billion. The company’s “Hybrid AI strategy” integrates personal AI across its devices while also emphasizing enterprise AI solutions designed to help clients extract valuable insights from their data. Additionally, Lenovo has solidified its position as the leading PC vendor globally in the fourth quarter, capturing a market share of 24.4%.