By Sherry Qin

Lenovo Group is scheduled to report its fiscal second-quarter results on Thursday. Here's what you need to know:

NET PROFIT FORECAST: The world's largest maker of personal computers is expected to post a 6.4% rise in net profit to $382 million in its fiscal second quarter, according to a FactSet poll of nine analysts.

REVENUE FORECAST: The PC maker's revenue for the three months ended September was likely $20.00 billion, up 12% from the previous year. Strong PC sales may have been partly offset by sluggish smartphone sales amid intensifying overseas competition, while growth in the infrastructure segment likely slowed as China's AI server adoption remains constrained by supply bottlenecks, UOB analysts said in a note.

Lenovos' shares have edged 4% lower so far this year despite a 23% gain in the third quarter. Chinese tech stocks have rallied broadly in the third quarter amid easing U.S.-China trade tensions and the AI frenzy. As China goes all-in on the AI race against the U.S, Lenovo is one of Macquarie's top picks in the tech hardware and networking space as Chinese companies look for domestic suppliers for AI servers. However, recent concerns that an AI bubble could be forming have weighed on global tech stocks.

WHAT TO WATCH:

-- High memory-chip prices could remain a concern for Lenovo going forward. After DRAM prices spiked over the past months amid the robust AI-related demand, markets expect further rounds of price increases through 2026, UOB analysts said in a note. High memory prices will likely impact Lenovo's profitability as it's unlikely to pass all its additional costs to the consumers, the analysts added.

-- Counterpoint Research expects AI PC shipments to significantly ramp up after 2026 as a new generation of chips and platforms hit the market. Investors should pay attention to management's comments on its AI PC shipments and its outlook for 2026.

-- The global PC market has maintained strong momentum helped by the Windows 11 transition. Lenovo's PC shipments in the September quarter rose 17% on year to 19.4 million units with a market share of 25.5%, according to IDC data.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

November 17, 2025 22:08 ET (03:08 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.