According to its third-quarter earnings report, Lenovo's revenue reached $19.7 billion, a 24% increase year-on-year, partly driven by growth in AI computing. Net profit reached $359 million.

According to research firm IDC, Lenovo's PC shipments increased 3% to 16.5 million units during the same period, maintaining its 24% market share.

Lenovo China Daily
Lenovo chairman Yang Yuanqing revealed that the company will open more factories outside of China. (Photo: China Daily)

The demand for AI computers has become a major growth driver for PC manufacturers. Lenovo launched its first AI PC model in May in China and overseas in September.

The company expects PC AI to account for 25% of its sales by 2025 and 80% by 2027.

In addition, Lenovo has expanded its product portfolio, including AI software and servers, to capitalize on the trend. Its Infrastructure Solutions division recorded a revenue increase of over 60% thanks to demand for AI-powered servers in data centers.

The Solutions and Services division reported revenue of $2.2 billion, up from $1.9 billion a year earlier.

According to Chairman Yang Yuanqing, Lenovo will continue to diversify its supply chain and open more factories outside of China amid global geopolitical instability.

Most of Lenovo's factories are located in China, but this would be a weakness if President-elect Donald Trump imposed a 60% tariff on imports from that country.

The world's largest PC manufacturer operates more than 30 factories in nine different countries. Mr. Yang revealed plans to open another factory in Saudi Arabia following an investment agreement with the kingdom's Public Investment Fund.

(According to Beamstart)