AI boom lifts Lenovo shares 15% as quarterly revenue hits record $21.6 billion

Lenovo shares rose by more than 15% on Friday after the personal computer and electronics company reported robust revenue growth fuelled by its rapidly expanding artificial intelligence business.

Record quarterly revenue

Group revenue for the quarter ended March reached $21.6 billion, a 27% increase compared with the same period a year earlier — the strongest growth rate the Hong Kong-based Chinese multinational has recorded in five years.

Net income rose by almost sixfold to reach $521 million. The company's full-year results also hit a record.

AI revenue leads the charge

The standout contributor to growth was AI-related revenue, which climbed 84% during the fourth quarter and came to represent more than a third of total group revenue.

This category spans a broad range of products and services, including PCs and smartphones equipped with neural processing units, servers fitted with graphics processing units, and associated service offerings.

$100 billion ambition

Lenovo has set its sights on becoming a $100 billion company within the next two years, with artificial intelligence central to that growth ambition.

Chairman and Chief Executive Yuanqing Yang outlined the target in a statement, though the company's current market capitalisation stands at approximately $24 billion.

Hybrid AI strategy

The company's so-called "Hybrid AI strategy" covers two principal areas: personal AI, which is embedded across its consumer device portfolio, and an enterprise AI division focused on helping corporate clients extract insights and commercial value from their own data.

PC market dominance

Lenovo also held onto its position as the world's leading PC vendor during the fourth quarter, with its global market share reaching 24.4%.