Lenovo Stock Doubles in May on AI Server Boom—Best Month in 27 Years

The price of Lenovo shares an increase of 31% Friday and has now gained 109% in May—the best monthly performance since 1999.

Shares of the world’s largest PC maker have more than doubled this month, making it the biggest gainer on the Hang Seng Index year-to-date, up 159%.

The meeting was not random. Lenovo Q4 earnings showed quarterly revenue of $21.6 billion—up 27% year over year and the fastest quarterly growth in five years. Net profit hit $521 million, up 479% from $90 million a year earlier. Lenovo’s company’s growth makes almost its quarterly profit, forcing the market to rethink its prices completely.

The engine behind it is Infrastructure Solutions Group, or ISG—a division of Lenovo that makes AI-optimized servers, storage systems, and data products for major enterprise customers and cloud providers like Amazon, Microsoft, and Google. ISG has been sent recording $5.6 billion in revenue, up 37% year over year, and surpassing $19.2 billion for the full fiscal year.

Company-wide, AI-related revenue grew 84% year-over-year and now accounts for 38% of Lenovo’s total sales for the quarter. More than a third of Lenovo’s revenue today comes from AI. Goldman Sachs more than twice its price on Lenovo to follow the results.

Then Dell came. Thursday, Dell Technologies report Q1 FY2027 revenue of $43.84 billion, up 88% year-over-year, and raising its full-year guidance for the AI ​​server to $60 billion. The backend of Dell’s AI server is now worth $51.3 billion. Marketers read those numbers, looked at Lenovo, and bought.

“The growth of server AI is clearly a driver, and demand is now spreading from hyperscalers to enterprises to meet the demands of AI, which benefits traditional server OEMs such as Lenovo and Dell,” Bloomberg Intelligence Analyst Steven Tseng. he said.

This shift from the hyperscalers – the Amazons and the Googles – to the always-on enterprise companies is the biggest development here. For two years, a Building an AI infrastructure it is centered around Nvidia chips and a few specialized players. Lenovo and Dell are companies that assemble racks, customize hardware configurations, and ship ready-to-use computers to businesses that want AI without building them from scratch.

Lenovo is also running its PC business well. The Intelligent Devices Group posted $14.6 billion in Q4 revenue, up 24% year-on-year, Lenovo has a 24.4% share of the global PC market—more control than its nearest rival in 15 years. The AI PC wave it helps. But server architecture is what moved the needle on the stock.

Contrasting with other Hong Kong technology makes the meeting even more challenging. The Hang Seng Tech Index has fallen more than 15% this year, weighed down by internet platforms that are hemorrhaging the use of AI tools. Lenovo is in a different position – selling infrastructure, not buying.

CEO Yuanqing Yang to be invited FY2026 is the best year in Lenovo’s 40-year history and is targeting $100 billion in annual revenue within two years. Full-year revenue came in at $83.1 billion, up 20% – the first time the company has surpassed $80 billion.

ISG enters FY2027 with an AI server pipeline of more than $21 billion in dedicated demand, though how quickly Lenovo can ship depends on its acquisition of GPU components from Nvidia, which remains a major constraint for the entire server industry.