Lenovo Shares Fall After Intel Guides for Soft Sales

By Tracy Qu

Lenovo's shares fell sharply after U.S. chipmaker Intel flagged a tepid sales outlook in the first quarter of the year, raising concerns about a long-awaited rebound in the personal computer market.

Shares of the world's largest PC maker were 8.6% lower at the mid-day break Friday in Hong Kong, taking their loss this year to 14%.

The drop comes after Intel forecast roughly $12.7 billion sales for the first quarter of 2024, higher than last year but still missing analyst expectations.

That outlook is "raising market concerns on PC demand," Maybank head of retail research Sonija Li said.

Lenovo shares have been on a tear in recent months, helped by hopes for improved sales. Over the past 12 months, its shares have surged around 50%, making it the best performing stock among Hang Seng Index constituents over that period.

Global PC maker shipments fell 13% to 247 million units in 2023, but companies "can now look forward to an improving landscape" on the back of improving macroeconomic conditions, research firm Canalys said in a report earlier this month. "Companies and individuals that have delayed their purchasing for many quarters are now set to resume spending on PCs," it added.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

January 26, 2024 00:41 ET (05:41 GMT)

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