G Sachs Anticipates AI PCs and Generative AI Will Propel LENOVO GROUP (00992.HK) Long-Term Growth, Maintains Buy Rating
Goldman Sachs Report: Goldman Sachs predicts LENOVO GROUP will benefit from the growth of AI PC and server businesses, maintaining a Buy rating.
Revenue Growth Forecast: The firm forecasts a revenue CAGR of 11% for LENOVO from 2025 to 2027, driven by AI PC products and market share gains.
Performance Highlights: LENOVO's net profit for Q1 reached USD 505 million, up 108% year-on-year, with its server business shifting towards high-end products.
Market Position Improvement: LENOVO's global PC shipments grew by 15.2% YoY in Q2 2025, increasing its market share from 23% to 24.8%, prompting Goldman Sachs to raise its target price from $12.48 to $13.56.
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LENOVO GROUP Aims to Collaborate with Various AI Model Providers
LENOVO GROUP's AI Ambitions: LENOVO GROUP is aiming to become a leader in AI by forming partnerships with major language model companies globally, as stated by CFO Winston Cheng at the World Economic Forum in Davos.
Potential Partners: The company is considering collaborations with firms such as Humain from Saudi Arabia, Mistral AI from Europe, BABA-W, and DeepSeek to enhance its AI capabilities.
HSI Rises by 97 Points Driven by Demand for Chip, AI, and Robotics Stocks; HUA HONG SEMI Gains 5%
Market Performance: The Hong Kong stock market saw a rebound with the HSI rising 0.4% to 26,585, driven by the US-Europe dispute over Greenland and a total market turnover of HKD250.451 billion.
AI and Tech Stocks Surge: The launch of the new DeepSeek model, MODEL1, boosted AI and chip-related stocks, with notable gains from companies like SENSETIME-W and INSILICO, while some stocks like UNISOUND experienced declines.
Chinese Exports Growth: China's exports in December increased by 6.6% year-on-year, surpassing the previous value of 5.9% and exceeding forecasts of 3%.
Mixed Performance Among Major Tech Firms: BIDU-SW launched a new AI feature and saw a 3.3% stock increase, while other tech giants like TENCENT and JD-SW had modest gains, and NTES-S faced a significant decline of 3.7%.
