Lenovo’s Rally May Extend as AI Adds to Optimism
Lenovo stock has jumped about 60% so far this year
Demand recovery, AI frenzy may help extend rally into 2024
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Lenovo’s Rally May Extend as AI Adds to Optimism
Stock has jumped about 60% so far this year as AI frenzy may help extend the rally into 2024#lenovo #ai #pc #chips #pc pic.twitter.com/UqJ29ZEKA5— The_Journalbiz (@the_journalbiz) December 20, 2023
Bloomberg chart on Lenovo
A three-month rally in Lenovo Group Ltd. shares may have legs, thanks to signs of a global demand recovery for personal computers and enthusiasm about the Chinese firm’s products tied to artificial intelligence.
The world’s top PC maker’s stock in Hong Kong has risen over 30% from a mid-October low, making it the best performer in the Hang Seng Tech Index during the period. Its 60% jump this year also puts it on track for the strongest annual performance since 2009.
Lenovo’s surge was part of a broader rally among its peers amid signs that a post-pandemic industry slump may have finally ended, helped by cyclical demand for PC replacement and upgrades.
High hopes for new products that may benefit from the ongoing AI investment frenzy also are fueling optimism that the stock’s bull run can last well into 2024
“The strong sentiment, in my opinion, was mainly driven by the impending recovery of PC demand starting likely from late 2023, and the rising fervor surrounding the concept of ‘AI PC’,” said Steven Tseng, a Bloomberg Intelligence analyst.
Lenovo said last month that it is targeting PC revenue growth this quarter after signs of a long-awaited recovery helped it report a smaller-than-feared profit decline.
