Lenovo Group's stock experienced a sharp intraday decline of 5.05% on Friday. The movement comes as the stock retraces from a recent all-time high, with traders citing profit-taking pressure following a significant year-to-date rally of over 44%.

The decline is also attributed to cautious sentiment ahead of the company's scheduled full-year earnings release. Furthermore, market chatter reported that despite U.S. clearance for Lenovo to purchase Nvidia's H200 AI chips, zero deliveries have been made to date, with Beijing reportedly advising local companies to stall such purchases. This development casts doubt on near-term benefits from the recently eased export restrictions.

Broader weakness in the technology hardware sector, with peers also trading lower, contributed to the overall selling pressure on Lenovo shares during the session.