Lenovo Shares Continue to Surge As Investors Re-examine Its Potential

By Sherry Qin

Lenovo's shares continued rise this week after its stellar results on Friday, which led investors to re-examine its potential beyond personal computers amid the AI boom.

Shares of the world's largest PC maker rose have gained almost 25% in Hong Kong this week--including a 8.4% rise Wednesday--hitting a string of record highs after it jumped 20% on Friday.

Lenovo Friday reported its fastest revenue growth in years for the three months ended in March and its net profit easily beat market expectations. Building on the momentum, the company has set its sights on $100 billion in annual revenue--a goal it expects to achieve in the next two years.

DBS thinks its latest results strengthen the case for re-rating of its shares. Multiple brokerages, including Citi, DBS and Goldman Sachs, have raised their target prices for Lenovo's stock following the results.

Lenovo's bread-and-butter PC business has stayed resilient despite surging memory costs. Analysts reckon that it has been able to pass on rising memory costs better than feared due to its strong brand image and greater focus on premium products.

Lenovo remained the world's leading PC maker by shipments in the first three months of 2026, with a market share of 25%, according to data from industry tracker IDC.

Its infrastructure solutions segment, which used to be a drag on its margins, delivered its highest-ever quarterly revenue and operating profit thanks to a strengthened business model, the recent restructuring and robust AI demand.

"Lenovo has now demonstrated that its AI infrastructure growth can convert into profit," DBS analyst Jim Au said. AI demand boosted by rising data center and server demand amid agentic AI adoption is expected to support the segment's top line, he added.

Morningstar expects Lenovo's infrastructure segment revenue to rise 35% in fiscal 2027 as customers race to bring AI infrastructure online and seem willing to pay more to secure Lenovo's ability to coordinate complex supply chains in server manufacturing.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 26, 2026 23:37 ET (03:37 GMT)