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Lenovo bets on AI servers despite quarterly net loss
Lenovo said its infrastructure-solutions revenue nearly doubled to $777 million operating profit, while its AI server order pipeline hit $54 billion.
Lenovo Group swung to a net loss in its first quarter, even as the company’s revenue jumped 43% year over year to $26.94 billion on strong demand for AI hardware, according to a Wall Street Journal report cited by Yahoo Finance.
The company expects to reach its $100 billion annual revenue goal ahead of schedule, while its infrastructure-solutions segment, which covers data-center hardware, saw revenue nearly double year over year. That segment generated $777 million in operating profit, and Lenovo said its AI server order pipeline reached $54 billion.
Lenovo also reported adjusted net profit nearly tripled to $1.075 billion. Worldwide PC shipments fell 4.9% year over year in the quarter, marking the first decline after nine straight quarters of growth as a memory chip shortage pushed prices higher across the industry.
Yahoo Finance also noted that Lenovo maintained its position as the world’s top PC maker with a 24.2% market share, despite the quarterly swing to a $609 million net loss driven in part by a nonrecurring fair-value loss tied to revaluing warrants issued in 2025. The outlet added that Lenovo’s Hong Kong-listed shares have risen roughly 150% in the June quarter alone and 275% for the year.