Lenovo Group shares hit record high as AI demand drives growth

Lenovo Group shares reached a historic high, with the stock price climbing to 37.42 HKD during recent trading sessions. This surge has pushed the company's market capitalization to 462.3 billion HKD, surpassing Meituan.

Lenovo's recent financial performance showed record revenue and adjusted net profit for its first fiscal quarter, driven by significant AI-related growth. All three major business groups reported double-digit year-on-year revenue growth.

Morgan Stanley has maintained an ‘overweight’ rating on Lenovo with a target price of 46 HKD, citing strong demand for general-purpose and AI servers. The bank noted that cloud customers account for approximately 70% of server revenue. While Lenovo may enter the GB300 market later than some competitors, its VR200 shipments are expected to align with industry leaders.

Lenovo CFO Zheng Xiaoming stated that the company is ‘completely undervalued’ by the market, noting that its current valuation is significantly lower than Dell's despite a much smaller gap in revenue and net profit. He emphasized that growth opportunities are backed by real orders and ongoing customer projects.