It was frequently praised by institutions, and Lenovo's stock price rose to a new high in the past year.

Monday morning, May 27th$LENOVO GROUP (00992.HK)$At one point, the stock price rose more than 9% to HK$12.06 per share, a record high.

According to the news, recently, many major banks, including Damo, Goldman Sachs, and CITIC Lyon, have successively expressed optimism about Lenovo Group, believing that the AI PC trend will bring significant room for the company's stock price to rise.

Lenovo may become the biggest beneficiary of AI PCs

According to Daimo's definition, an AI PC (AI personal computer) refers to a personal computer equipped with a neural processing unit (NPU) and a performance of at least 40 trillion cycles per second (TOPS).

Currently, the industry generally believes that with the continuous development of AI technology, AI PCs will inject new vitality into the development of the PC market. In a research report released on May 21, Morgan Stanley predicts that AI PCs will be the next key factor driving the growth of the PC market. It is expected that the market penetration rate of AI PCs will rapidly grow from 2% this year to 65% in 2028.

Damo said in the report that because it has self-developed AI chips, the most comprehensive AI features, and AI assistants, Lenovo will become one of the biggest beneficiaries of the AI PC market.

Fundamentally, there are two main reasons why Damo is optimistic about Lenovo:

1) High market share: Lenovo is the brand with the highest sales share among notebook computers priced at $1000+ (other than Apple), and also has the highest commercial risk exposure, which is about 61%;

2) The valuation sector's low level: Lenovo's price-earnings ratio for fiscal year 2026 is about 8.8 times, and the 5-year average price-earnings ratio is about 8.9 times; lower than Dell's 14.8 times (fiscal year 2026), Asus's 12.2 times (fiscal year 2025) and the average of other PC original equipment manufacturers (15-20 times).

The report predicts that Lenovo's AI PC market penetration rate will reach 64% in 2028, and the revenue share of AI PCs will rise to 53% from 2% in FY24.

According to the report, it saw significant room for the rise in Lenovo's stock price, and the company's stock rating was upgraded to “over balance,” and the target price was raised by 65% from HK$9.10 to HK$15.

At last week's conference call, Lenovo also revealed its optimistic stance on AI PCs, and expects that about 20% of the PCs shipped by the company in 2024 will be equipped with NPU; by 2026, the penetration rate of AI PCs may reach 50% to 60%.

Currently, Lenovo's annual shipment volume is between 55 and 60 million units, and 60% of the shipment volume means that about 36 million of these will be AI PCs.

As of today's midday close, Lenovo's Hong Kong stock rose 7.59% to HK$11.9 per share, with a turnover of over 64 million lots and a turnover of over HK$760 million. Since this year, the company's stock price has increased by 8.97% cumulatively.

Editor/Somer