Today, driven by AI market momentum, LENOVO GROUP (00992) stock climbed to HK$12.08, reaching a market capitalization of HK$149 billion. Looking ahead, with strong demand driven by global hybrid artificial intelligence development, both domestic and international institutions share a consensus that Lenovo's stock price may continue rising, with valuations entering a new phase. Huatai Securities believes that with continuous improvement in AIPC market share and hybrid AI solutions continuing to serve as important growth drivers, they have set a latest target price of HK$16.
According to IDC data, the company achieved a record-high global PC market share of 24.6% in 2QCY25, with market share advantages expected to continue expanding. During the company's conference call, management indicated that AI PC market penetration has reached approximately 30%, while user engagement remains strong, with active users purchasing AI applications reaching about 40%. As AI technology continues to mature and user acceptance improves, AI application penetration rates are expected to further increase, potentially driving continued structural upgrades and profitability improvements for Lenovo's PC products.
Additional positive factors include the "China+N" global layout highlighting flexible production capabilities and Saudi investment opening new opportunities in the Middle East.
Regarding global supply chain layout: 1) Lenovo's unique "China+N" globalized manufacturing layout, centered on China, demonstrates significant advantages in the current trade environment. According to earnings conference disclosures, based on the "China+N" manufacturing layout, the company operates over 30 manufacturing bases globally, including owned factories in 11 countries, combining resilience and agility. When facing external environmental uncertainties, Lenovo can leverage the advantages of its "global resources, local delivery" operating model, such as through localized production in Mexico and Hungary, effectively managing risks and ensuring delivery efficiency.
2) Additionally, Lenovo has completed a $2 billion zero-coupon convertible bond investment with Alat, a company under Saudi Arabia's Public Investment Fund (PIF), and is establishing a production base in Saudi Arabia, expected to begin production in 2026, positioning to deeply participate in AI infrastructure and digital economy construction under Saudi's "Vision 2030" national strategy.
Cathay Haitong believes that Lenovo has successfully eliminated boundaries between devices and operating systems by launching "Tianxi" personal super intelligent agent and "Lexiang" enterprise super intelligent agent, achieving seamless collaboration across PC, mobile, and tablet terminals. This cross-device intelligent integration not only improves user work efficiency but also provides unprecedented personalized experiences. Meanwhile, Lenovo's open Smart Connect 2.0 ecosystem further promotes third-party device integration, expanding AI application scenario boundaries.
Open interconnection and multi-terminal collaboration are taking shape. Innovative formats showcased at IFA 2025, including rollable screens, solar-powered Yoga, and Legion Glasses, extend AI capabilities to mobile office, outdoor scenarios, and immersive gaming, further enriching the "edge-cloud-device" data loop. Expanding device base and continuously self-reinforcing personal knowledge bases create positive cycles for the Tianxi super intelligent agent in terms of accuracy and user stickiness, solidifying Lenovo's core competitive advantage in cross-terminal collaboration.
Regarding market positioning, capitalizing on the AI dividend period. Facing rapid growth in global AI infrastructure demand, Lenovo has successfully captured AI infrastructure growth opportunities through its global positioning and dual-track strategy. In FY2026Q1, Lenovo's ISG business revenue increased 36% year-over-year, with AI infrastructure business achieving explosive growth of 155% year-over-year. Additionally, Lenovo's leading position in the PC market has been further consolidated, with AI PC shipments accounting for over 30%, making it a global market leader. Through precise market positioning and continuous innovation investment, Lenovo is steadily moving toward full AI value realization.
International major bank HSBC has also joined the bullish camp, believing Lenovo's PC business remains a cash cow while server business is in a continuous investment phase, maintaining a "Buy" rating. HSBC believes Lenovo demonstrates strong momentum in both consumer and commercial PC segments:
Consumer PCs: The company continues to gain market share across multiple markets, with strong gaming PC demand (especially in the Chinese market). Due to stable activation rates for Lenovo PC products, channel inventory levels remain healthy.
Commercial PCs: Lenovo's management maintains an optimistic outlook on commercial PC refresh cycles. According to management assessment, approximately 250 million devices globally still run Windows 10 systems, which could become core growth drivers for future PC refresh cycles. Before fiscal year 2026 (FY26), commercial PC upgrades will continue supporting gross margin growth for the Intelligent Devices Group (IDG) business.
Regarding tariff impacts, Lenovo has relocated PC production capacity for the US market to Vietnam, limiting tariff effects on its PC business. Despite tariff policy uncertainties, Lenovo's globalized production layout provides greater flexibility to respond to dynamic market changes.
The ISG business is in a continuous investment phase, with increasing strategic investments in the SME sector and enhanced investments in AI server capabilities to achieve better operational leverage effects.