0329 GMT - Lenovo's upcoming memory costs are likely to be less favorable than expected, Morningstar analyst Jing Jie Yu says in a research note. The PC maker may have to hike prices further to reduce the impact of memory costs on margins, the analyst says. Morningstar sees little relief in PC memory costs and prices in the next two years, which would weigh on PC shipments. Meanwhile, despite guiding for a turnaround as soon as the first(?) fiscal quarter, the analyst thinks it's unlikely for Lenovo's infrastructure business to be accretive to Lneovo's profits in the long run. The company assemblies externally sourced server and storage components, giving it limited pricing power, she notes. Shares are last 0.5% lower at HK$9.21. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

Lenovo guided for its infrastructure business to mark a turnaround as soon as the fiscal fourth quarter. "Lenovo's Memory Costs Likely to Be Less Favorable Than Expected -- Market Talk," at 0329GMT, incorrectly said it could make a turnaround in the fiscal first quarter.

(END) Dow Jones Newswires

February 15, 2026 22:49 ET (03:49 GMT)

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