The logo of Lenovo, a Chinese multinational technology company, seen in Shenzhen. (Photo by Alex Tai/SOPA Images/LightRocket, Getty Images)
Alex Tye | SOPA Images | Light Rocket | Getty Images
Lenovo stock soared more than 15% on Friday after the computer and electronics giant posted strong revenue growth driven by growth in its artificial intelligence business.
Group revenue reached $21.6 billion in the March quarter, up 27% year-on-year, the highest growth rate for the Hong Kong-based Chinese multinational in five years. Net income increased nearly six times to $521 million. Full-year results were the highest ever.
A standout performance was AI-related revenue, which surged 84% in the fourth quarter and accounted for more than a third of the group’s total revenue. This category includes devices such as PCs and smartphones with neural processing units, servers with graphics processing units, and services.
Lenovo aims to become a $100 billion company within the next two years, and Chairman and CEO Yang Yuanqing said in a statement that much of its growth plans hinge on AI. Its market capitalization is currently around $24 billion.
Lenovo’s “hybrid AI strategy” includes personal AI across the company’s devices, as well as an enterprise AI business focused on helping customers leverage data to gain insights and business value.
Lenovo maintained its position as the world’s top PC vendor in the fourth quarter, with global market share reaching 24.4%.
