Shares of Chinese PC brand Lenovo are having their best month in 27 years. Is it too late to buy them?

Shares of Lenovo, the world's largest personal computer maker, more than doubled in May: this is their best monthly result in more than a quarter of a century, Bloomberg reported. The company has become one of the beneficiaries of the development of artificial intelligence: revenue from the AI sector helps the company overcome the pressure from rising component prices.

Shares of Lenovo Group in Hong Kong added more than 105% in May, and since the beginning of 2026, they have risen in value by almost 159%. In trading on Friday, Ma. 29, the stock was up 31% at the moment, but the pace slowed to 22% by the close.

For Lenovo shares, May 2026 was the best month since 1999, Bloomberg wrote. The securities are the best in terms of growth this year in the Hang Seng China Enterprises index, the agency noted. Investors have become more optimistic about the company's growth prospects, which have improved thanks to artificial intelligence, it said.

The rally accelerated on Friday after U.S. Dell gave a strong outlook due to strong demand for artificial intelligence servers, Bloomberg explained. Investors began to see Lenovo as a potential bet on AI infrastructure, the agency noted.

In May, the company said the past 2025/26 fiscal year was the strongest in its history, with fourth-quarter revenue growth of 27% the best in five years. AI-related sales accounted for 38% of the total. Net income increased about sixfold to $521 million: that's one and a half times what analysts expected, The Wall Street Journal wrote, citing a FactSet survey.

"The growth of AI servers is obviously a driver [of the stock's growth], given that demand is now spreading from hyperscalers (owners of the largest cloud servers. - Oninvest) to the enterprise sector for AI computing tasks, which benefits traditional server makers such as Lenovo and Dell," said Bloomberg Intelligence analyst Stephen Tseng.

Goldman Sachs more than doubled its target price for Lenovo shares at the end of Ma - from HK$12.53 to HK$27 (from $1.6 to $3.45). That's 13% above the closing price on May 29 (i.e., already including the Ma rally). Goldman also reiterated its recommendation to buy Lenovo securities (Buy rating).

Analysts in general confidently advise to buy Lenovo shares: securities have 17 ratings Buy and Overweight against only three Hold (recommendation to hold) and one Underweight ("Below market", corresponds to the recommendation to sell), follows from the data of FactSet.

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