Lenovo released data on its earnings in the last quarter, which exceeded preliminary expectations for growth in the corresponding indicator and became an example contributing to the strengthening of expectations that the computing industry will be able to receive a recovery boost due to global spending on artificial intelligence.
The mentioned company’s net income for the three months ending in June was fixed at $243 million. This indicator showed an increase of 38% compared to the result for the same period in 2023. It is worth noting that analysts interviewed by the media predicted that the company’s net income for the quarter ended in June would be fixed at $ 231 million.
Lenovo’s revenue grew by 20% year-on-year. Last quarter, the corresponding figure in monetary terms amounted to $15.4 billion. At the same time, LSEG’s preliminary estimate provided that the company’s revenue for the quarter ended in June would be fixed at $14.1 billion.
The mentioned results reflect the growing consumer demand for servers, which are necessary to support the artificial intelligence development process. It is worth noting that after the coronavirus pandemic, a downturn was observed in the computing hardware market. The situation is currently improving. The main driving force behind the corresponding positive tendency is the so-called artificial intelligence boom. Currently, large technology companies, including, for example, Google, Microsoft, and Amazon, are increasing their spending on data centers. These functional objects are necessary for the operation of artificial intelligence systems. In the emerging era of AI, computing power is critically important.
In the June quarter, Lenovo shipped 14.7 million personal computers. In terms of the corresponding indicator, the company has surpassed its competitors such as HP and Dell. At the same time, the value of Lenovo shares, headquartered in Beijing, has not yet shown rapid growth due to factors such as concerns about the Chinese economy’s prospects and risks associated with increased geopolitical tensions.
As we have reported earlier, Lenovo and Alibaba Cooperate to Build AI Computers.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
