HK Stock Market Move | LENOVO GROUP (00992) rose nearly 7% in early trading as orders from the three major AI server manufacturers continued to increase, and Lenovo's server business is approaching a doubling in size.

LENOVO GROUP (00992) rose nearly 7% in early trading. As of the time of writing, it is up 4.91%, priced at HK$32.04, with a trading volume of HK$1.598 billion. In terms of news, Lenovo's first fiscal quarter results show that the company's AI business is growing rapidly and has a strong order backlog. The reserve orders for its AI servers increased significantly from RMB 140 billion in the previous fiscal quarter to RMB 360 billion. AI-related business revenue grew by 60% year-on-year, reaching RMB 63.4 billion, a historical high, accounting for about 35% of the group's total revenue; AI service revenue saw a year-on-year increase of 141%. Orient Securities stated that the simultaneous rise in both quantity and price of AI servers is driving an improvement in profitability, and the benefits from the industry chain are expected to continue to materialize. Notably, the latest quarterly results from the three global AI server manufacturersLENOVO GROUP, Dell, and HPEhave all surpassed expectations, with the largest DRIVER being the rapid growth in AI server revenue and orders. Among them, LENOVO GROUP's server business experienced close to double growth. The simultaneous increase in orders from the three major AI server contenders indicates that global capital expenditure on AI is still accelerating.