Lenovo's AI Infrastructure Momentum Expected to be Intact

Dow Jones10-19 15:59

0759 GMT - Lenovo's AI infrastructure momentum should be intact despite recent market volatility, Citi analysts say in a research note. While there have been increasing market concerns surrounding highly leveraged AI infrastructure operators like Coreweave, a client of Lenovo, the company's direct exposure to higher-risk neocloud customers remains limited, they say. Citi expects Lenovo's fiscal 2Q revenue to rise 33% on year to US$27.1 billion and its adjusted net profit to reach US$1.18 billion, reflecting intact infrastructure revenue momentum and continued margin improvement. However, Citi lowers Lenovo's target price to HK$40.00 from HK$50.00 reflecting the potential share dilution on convertible bonds and warrants. Shares are 8.0% higher at HK$28.06.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment