On May 26, Hong Kong-listed technology stocks broadly opened higher, with Lenovo Group continuing its recent rally. Lenovo shares (00992.HK) rose more than 15% intraday, with turnover exceeding HK$4.5 billion, hitting a fresh all-time high since listing. The stock had already surged nearly 20% on May 22 following the release of its latest earnings report.

Market participants believe the recent rally has been driven by stronger-than-expected earnings, accelerating AI-related business growth, and a wave of target price upgrades from major brokerages, keeping investor attention elevated in the near term.

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Fourth-quarter results significantly exceeded expectations, with profitability improving sharply

Lenovo reported its results for the fourth quarter and full fiscal year ended March 31, 2026, on May 22.

According to the earnings release, fourth-quarter revenue reached US$21.6 billion, up 27% year-over-year, marking the company’s fastest quarterly revenue growth in nearly five years. Full-year revenue came in at US$83.1 billion, surpassing the US$80 billion mark for the first time.

Profit growth was even stronger. Net profit for the quarter increased 479.5% year-over-year, while adjusted net profit more than doubled from a year earlier.

The market broadly viewed the results as a clear beat across key metrics, reflecting not only resilience in Lenovo’s core businesses but also accelerating momentum in its newer growth segments.

Lenovo’s Intelligent Devices Group (IDG) remained the company’s largest revenue contributor. Supported by a recovery in PC replacement demand and the launch of new AI PC products, IDG revenue rose 24% year-over-year during the quarter, delivering its fastest growth in nearly five years. According to earlier data from IDC, Lenovo maintained its position as the world’s largest PC vendor by market share.

AI server orders emerge as a new valuation driver

Beyond PCs, investor focus has increasingly shifted to Lenovo’s Infrastructure Solutions Group (ISG), particularly its path to profitability.

The company reported that ISG revenue increased 37% year-over-year in the quarter, while operating margin improved to 3.6%, indicating a meaningful earnings recovery.

Lenovo also disclosed that its AI server order backlog has exceeded US$21 billion, representing substantial growth from the prior year. This suggests that enterprise customers and cloud service providers continue to maintain robust capital spending on AI infrastructure globally.

Amid the ongoing AI investment cycle, Lenovo’s server business is increasingly viewed as a key growth engine.

During the earnings call, management said the company will continue investing in AI servers, edge computing, and enterprise storage solutions, with the goal of further expanding scale in these businesses.

In addition, AI-related revenue grew 84% year-over-year and accounted for approximately 38% of Lenovo’s quarterly revenue.

The market generally believes Lenovo has now established a relatively complete AI ecosystem spanning end-user devices, computing infrastructure, and enterprise solutions—giving it a differentiated position among traditional hardware manufacturers.

Brokerages raise target prices as market anticipates further re-rating

Following the earnings release, several financial institutions revised up their earnings forecasts and target prices for Lenovo.

Goldman Sachs raised its 12-month target price on Lenovo from HK$12.53 to HK$27.00 while maintaining a positive rating. The bank cited stable PC margins, improving profitability in the server segment, and Lenovo’s expanding AI ecosystem across devices, infrastructure, and solutions as key drivers of future growth.

China International Capital Corporation raised its target price by 35% to HK$20.00, noting that rapid growth in AI server backlog and improving ISG margins point to potential valuation upside for a business that had previously been undervalued by the market.

DBS Bank also lifted its target price to HK$23.50, while HSBC increased its target price to HK$18.90 and raised earnings forecasts for the new fiscal year to reflect improving profitability.

Broker commentary suggests investor perception of Lenovo is gradually shifting—from a traditional PC leader to a broader technology platform centered on “AI infrastructure + intelligent device ecosystem.”

Market watches pace of AI monetisation

Analysts noted that Lenovo’s recent share price surge reflects both a fundamental re-rating following the earnings beat and optimism around the sustainability of the global AI capital expenditure cycle.

As AI PC penetration continues to rise, enterprise digital transformation accelerates, and demand for AI servers remains strong, Lenovo’s revenue mix may continue to improve over time.

That said, some institutions also flagged risks worth monitoring, including fluctuations in upstream memory pricing, changes in global supply chain costs, and the pace of AI server order deliveries, all of which could affect margins going forward.

Overall, backed by record earnings and a series of bullish broker upgrades, Lenovo has become one of the most closely watched names in Hong Kong’s technology sector in recent weeks. Investors are likely to remain focused on how quickly its AI business continues to scale and whether margins in the infrastructure segment can sustain their recovery.

How to Buy Lenovo Group on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code (00992.HK) , and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

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