Hong Kong Stock Connect Movement | Switching from “Hardware Manufacturer” to “AI Infrastructure Platform” Lenovo Group hits a new high, up more than 44% year-to-date

Lenovo Group (0992.HK) opened high and continued to rise today, currently up 6.78% to HKD 13.39, hitting a new all-time high; since the beginning of this year, the stock has increased by over 44%. Market analysis believes that behind this round of stock price increases, it reflects that Lenovo Group’s valuation system is shifting from a “hardware manufacturer” to an “AI infrastructure platform.”

In the Hong Kong stock market, Lenovo Group is a scarce leader of the “global AI ecosystem chain”—its business covers the entire ecosystem of “edge-端-cloud-network-intelligence.” As the world’s largest PC manufacturer, its AI PC shipments are growing rapidly, while also providing enterprise-level AI solutions and services, emphasizing inclusiveness, security, and hybrid deployment. Through a global supply chain and partnerships with companies like NVIDIA, it achieves large-scale implementation of AI from terminals to infrastructure.

Northeast Securities’ electronics team research report states that Lenovo Group is a core recommended target for May, with potential upside exceeding 110%. The firm believes that the increase in CPU consumption driven by Agent continues, and Lenovo’s ISG business is experiencing a dual boost from CPU and GPU servers. US stocks Dell and HPE have both hit new highs, and Lenovo’s stock price is expected to follow. Regarding Lenovo’s upcoming FY2025 financial report, it is estimated that Non-HK IFRS net profit attributable to shareholders will surpass guidance, reaching over $1.8 billion. The ISG business will grow by over 30% and successfully turn a quarterly profit. With the current surge in CPU shipments, the ISG business is expected to accelerate further. (Gelonghui)