Key Points
- Lenovo’s first-quarter profit more than doubled, easily beating Wall Street expectations.
- The strong results were driven by booming demand for AI PCs and servers.
- The company’s CEO welcomed the 90-day U.S.-China tariff truce, saying it provides more certainty.
- Lenovo’s AI server business in China grew by a huge 150%, despite tech tensions.
Lenovo, the world’s largest PC maker, reported better-than-expected first-quarter results on Thursday, with profits more than doubling thanks to a boom in demand for AI products. The company’s CEO, Yang Yuanqing, also welcomed the recent 90-day tariff truce between the U.S. and China, calling it a “positive situation” that brings more certainty to the market.
The company posted revenue of $18.8 billion for the quarter, easily beating the $17.4 billion analysts had forecast. Net profit more than doubled to $505 million, soaring past the consensus estimate of $307.7 million.
Yang attributed the strong performance to double-digit growth across all three of Lenovo’s major business segments, all driven by AI.
The demand for AI hardware is fueling this growth. AI PCs made up over 30% of Lenovo’s shipments, and its AI server business in China grew by a massive 150%. Yang said that despite the ongoing U.S.-China tech tensions and Beijing’s recent caution over buying Nvidia’s H20 chips, the demand for AI infrastructure in China remains strong.
As an Nvidia partner, Lenovo is also investing heavily in diversifying its supply chain with local components to meet different customer needs.
Yang also downplayed the impact of the current 30% U.S. tariff on Chinese goods. He noted that the U.S. market accounts for less than 20% of Lenovo’s total revenue and that the company’s global manufacturing footprint helps it navigate the trade dispute.
