Servers, storage, and software all saw significant increases, with Lenovo's ISG second quarter profits skyrocketing by 65%.

On November 15, 2024, LENOVO GROUP (00992) (ADR: LNVGY) announced its financial report for the FY24/25 second quarter (ending September 30, 2024). The report shows that LENOVO GROUP's Infrastructure Solutions Group (ISG) achieved a 65% year-on-year revenue growth, reaching 23.7 billion yuan, a historical high, and becoming a highlight of the overall company's performance. The impressive performance of ISG reflects Lenovo's leading position in the data center and infrastructure market, as well as its growing ability to provide digital infrastructure solutions to global enterprises. During this quarter, ISG has continued to narrow its operating losses, steadily moving towards breaking even. The rapid growth of the business also stems from the continued expansion of demand in the global data center and digital infrastructure markets. With the accelerated adoption of cloud computing, artificial intelligence, and the Internet of Things, various industries have seen a significant increase in demand for efficient data centers and reliable infrastructure. Enterprises, governments, and technology companies are actively building or upgrading their data centers and IT architectures to support the needs of big data processing, real-time analytics, and intelligent applications. Lenovo continues to increase its investment in product and technology innovation in the ISG segment, with data center products covering servers, storage devices, network equipment, and hyper-converged systems. It has made significant progress in the fields of high-performance computing (HPC) and artificial intelligence (AI), with storage, software, and service revenue growing by 35% year-on-year, reaching a historical high. By continuously optimizing its product portfolio and enhancing performance, Lenovo ISG has established a leading position in multiple key markets. To support the demand for artificial intelligence and machine learning applications, Lenovo has launched a series of specially optimized AI servers and HPC solutions. These products have significant advantages in data processing speed, energy efficiency, and computing power, meeting the high-performance requirements of enterprises in AI model training, large-scale data analysis, and more. Lenovo's high-performance computing products are not only widely used in scientific research and medical fields, but are also rapidly expanding in industries such as finance and manufacturing, further consolidating its market leadership. Through technology partnerships with tech giants such as AMD and Intel, Lenovo ISG has significantly improved its product performance and technical support. Lenovo's servers have widely adopted AMD's EPYC and Intel's Xeon processors, greatly enhancing computational speed and efficiency. Collaborative development with hardware suppliers helps Lenovo maintain its leading position in the data center market and ensures its ability to quickly respond to the diverse needs of different customers. At the Tech World conference in October, LENOVO GROUP announced a collaboration with NVIDIA to launch the ThinkSystem SC777 V4 Neptune, further expanding its long-term partnership with NVIDIA. This powerful new system leverages the new ThinkSystem N1380 Neptune to bring NVIDIA's leading acceleration computing and AI technology to the enterprise market, achieving trillion-parameter AI models in a compact design.