China's Lenovo posts 43% revenue jump as AI boom drives growth

China's Lenovo Group reported a 43% jump in quarterly revenue to $26.94 billion, beating forecasts and sending shares ​up 22%.

It was the group's highest quarterly revenue growth in the last five years as the world's largest computer maker rides an AI hardware boom and benefits from a global ‌memory chip shortage. 

AI-related takings surged 60% on the year to $9.3 billion, making ​up 35% of the total.

Successfully tackled supply shortages, cost increases

"We accurately anticipated supply shortages and cost ​increases (of memory chips), and addressed it successfully," Chief Executive Yang Yuanqing told Reuters, adding that he's "very confident" in sustaining growth ​and hitting $100 billion this fiscal year..

He attributed the success to the firm's ⁠scale, resilient global supply chains and diversified memory supply from China, South Korea and the United States.

AI server pipeline reached $54.0 ​billion, up 157% quarter-on-quarter, driven by hyperscalers, AI cloud and enterprise AI clients. 

"It's clear that we are ​becoming a global AI infrastructure leader as well," Yang said.

Lenovo's shares hit an all-time ‌high on ⁠Thursday before the results announcement, taking year-to-date gains to 225%.

Competitors have raised prices this year

US competitors Dell, Hewlett Packard and Super Micro have been some of Wall Street's best performers this year but have raised prices by 10% to 30% due to soaring memory chip costs.

But Lenovo's PC, tablet and smartphone division still grew 27%, accounting for 64% of revenue.

Global PC shipments ​declined by 2% in the ​second quarter to 16.6 ⁠million units, the first drop since early 2025 due to memory cost pressures, according to Counterpoint Research.

Lenovo held its market lead in the second quarter with a 25.6% share.

"We believe this ​will still be the trend in the second half of this year," Yang said in response to the ​decline in unit ⁠shipments, adding that sales of non-PC devices are growing.

Lenovo has raised PC prices twice this year to offset memory costs.