Chinese tech giant Lenovo reported significant increases in quarterly revenue and net profit, surpassing expectations. The company announced plans to capitalize on the utilization of DeepSeek's artificial intelligence model in its products.
Lenovo's third-quarter revenue soared by 20% to $18.8 billion, outperforming the LSEG consensus estimate of $17.8 billion, fueled by strong demand for its AI-powered servers.
Net profit more than doubled from the previous year to $693 million, exceeding the forecast of $367.7 million. While renowned for its personal computers, Lenovo has diversified into software and services, focusing on expanding its AI server and software ventures to meet the rising demand for AI applications.
CEO Yang Yuanqing projected that AI PCs would represent 25% of Lenovo's shipments by 2025, possibly reaching 80% by 2027. Lenovo integrated DeepSeek's technology into its devices, aiming to democratize access to AI with models featuring high inferencing efficiency and low computing costs.
The company's infrastructure solutions group, including servers, saw a 59% revenue hike in the December quarter, while the solutions and services group, catering to enterprise clients with cloud-based software, reported a $2.3 billion revenue, up 12% from the previous year.
After an initial rise post-results, Lenovo's Hong Kong-listed shares were down 6%, having surged 17% year-to-date.