Successfully predicted the rise in storage prices! LENOVO GROUP (00992) has a 50% higher than usual inventory of memory.

On November 25th, according to Bloomberg, LENOVO GROUP (00992) has been stockpiling memory and other key components to address the supply shortages caused by the artificial intelligence boom. "Lenovo's current inventory of components is about 50% higher than usual," Winston Cheng, Chief Financial Officer of LENOVO GROUP, told Bloomberg TV on Monday. The global trend of AI data center construction is driving up procurement costs for consumer electronics manufacturers, but Lenovo also sees opportunities in this trend, hoping to profit from its inventory advantage. "Of course, the prices of related products are rising very, very sharply, and I believe that such rapid price increases driven by AI demand are unprecedented," Cheng said. He added that Lenovo has signed long-term contracts and has scale advantages, stating that "companies with secure supplies can actually carve out a space in the market." Cheng stated that LENOVO GROUP will strive to avoid passing on the increasing costs to customers this quarter in order to sustain strong sales growth this year. He also mentioned that the company aims to find a balance between price and supply capability by 2026. During last week's LENOVO GROUP Q2 earnings call, Chairman and CEO Yang Yuanqing stated that the company had signed long-term supply contracts with key component suppliers. As a major buyer of core components, Lenovo is able to take a more proactive position in supply chain negotiations, which is an important advantage in responding to market fluctuations. For example, in the PC sector, the large purchasing volume not only allows for better cost prices, but also enables deeper strategic partnerships with suppliers, creating a "scale moat" that small and medium-sized players cannot easily match.