Chinese multinational technology company, Lenovo logo seen in Shenzhen. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)
Alex Tai | SOPA Images | LightRocket | Getty Images
Shares of Lenovo surged over 15% on Friday, after the personal computer and electronics giant posted strong revenue growth powered by its growing artificial intelligence business.
Group revenue for the March quarter reached $21.6 billion, up 27% year-on-year — the highest growth rate in five years for the Hong Kong–based Chinese multinational company. Net income grew by nearly a factor of six to reach $521 million. Full-year results reached a record.
The standout performer was AI-related revenue, which surged 84% in the fourth quarter to account for more than a third of total group revenue. The category includes devices such as PCs and smartphones with neural processing units, servers with graphics processing units, and services.
Lenovo aims to become a $100 billion company within the next two years, Chairman and CEO Yuanqing Yang said in a statement, with much of the growth plan hinging on AI. Its market cap is currently around $24 billion.
Lenovo’s “Hybrid AI strategy” encompasses personal AI across its devices, as well as its enterprise AI business, which focuses on helping customers leverage their data for insights and business value.
Lenovo also maintained its position as the world’s top PC vendor in the fourth quarter, with global market share reaching 24.4%.
