Lenovo Group (00992) climbed more than 4% during Tuesday's Hong Kong trading session, underscoring renewed investor optimism around the artificial intelligence-driven hardware cycle. As of the latest update, the stock was up 2.29% at HK$36.56, with turnover reaching HK$1.93 billion.

On the news front, Dell Technologies CEO Michael Dell recently told investors that amid the AI wave, prices for computing equipment and personal computers are set to keep rising, and that a "structural shortage" of hardware chips will likely worsen further by 2027. This outlook has cast a favorable light on the broader PC sector, including Hong Kong-listed players.

Notably, Lenovo Group's Senior Vice President and Chief Financial Officer, Zheng Xiaoming, stated that the company's valuation stands at roughly one-seventh of Dell's, yet its revenue and net profit are not seven times smaller. "We are completely undervalued by the market on this front," he said. He emphasized that Lenovo Group can achieve a long-term net margin of 5% to 8%, benchmarking directly against Dell's profitability levels.