Lenovo has forecast revenue of $100 billion as early as this year. Its stock hit a record high.

Lenovo, the world's largest personal computer manufacturer, has raised its revenue forecast for this fiscal year after demand for AI hardware helped its first-quarter results significantly exceed analysts' estimates. The company's stock hit a new record high.

Lenovo expects to increase its revenue to $100 billion in the current fiscal year, whereas the company had previously set a goal of reaching that figure within two years, CEO Yang Yuanqing said in an interview with Bloomberg on August 13. “Given the strong momentum in the first quarter, I am confident that we are ahead of schedule,” Yuanqing said.

Revenue for the quarter ended in June jumped 43% to $26.94 billion. The result exceeded analysts’ expectations of $22.3 billion, and the growth rate was the fastest in five years, according to Reuters. Revenue from artificial intelligence-related businesses increased by 60% year-over-year to $9.3 billion, accounting for more than a third of total sales. Adjusted net income soared 176% compared with the same period last year.

Lenovo has achieved steady growth in sales of laptops, smartphones, and tablets despite the ongoing memory shortage affecting the consumer electronics market. “We accurately anticipated the supply shortage and rising prices [for memory chips] and successfully managed the situation,” Yuanqing told Reuters.

Lenovo's PC, tablet, and smartphone division, which accounted for about 64% of total revenue, saw sales increase by 27% year-over-year. Lenovo has raised prices on personal computers twice this year to mitigate the impact of a spike in memory costs, according to Reuters.

Bloomberg notes that the company’s artificial intelligence infrastructure business has increased its operating margin to a record 9.1% thanks to strong profit growth. Lenovo’s order backlog for AI servers reached $54 billion, up 157% from the previous quarter.

Lenovo’s shares surged by a record 22% in Hong Kong on August 13, bringing its year-to-date gain to approximately 280% and cementing the company’s position as the leader of the Hong Kong Stock Exchange’s Hang Seng China Enterprises Index, according to Bloomberg. The market has dramatically shifted its view of Lenovo this year, paying less and less attention to its traditional roots in the PC sector. The company is now seen as a beneficiary of artificial intelligence infrastructure.

"Lenovo's results 'significantly exceeded expectations across the board, reinforcing its structural growth story driven by artificial intelligence,'" wrote Citigroup analysts, including Kaina Wong.

Of the 22 analysts covering the company's stock, 18 recommend buying it. The remaining four are neutral and recommend holding it in their portfolios. There are no sell recommendations.

This article was AI-translated and verified by a human editor