HK Stock Market Move | LENOVO GROUP(00992) Rebounds Over 4% as Better-Than-Expected U.S. Earnings Revive AI Trade; Citi Expects ISG to Remain Key Profit Engine

LENOVO GROUP(00992) rebounded over 4%, up 4.12% as of press time at HK$26.3, with turnover of HK$492 million. On the news front, the latest earnings reports from SpaceX and Super Micro Computer both beat market expectations, boosting market confidence in the AI trade. In the third quarter, SpaceX's AI revenue surged more than 9x year-on-year to US$7.56 billion, becoming the company's largest revenue source for the first time. Super Micro Computer expects revenue for the quarter ended September 30 to soar 279% year-on-year, about 27% above its previous guidance, with gross margin also rising to 12%-12.5%. Buoyed by this, U.S.-listed AI trade concepts rose across the board in after-hours trading, with Dell Technologies up over 6% and emerging cloud computing company CoreWeave up over 4%. Citi recently noted that recent market concerns about highly leveraged AI infrastructure operators have triggered volatility in the AI supply chain, but LENOVO GROUP's direct exposure to high-risk new cloud customers remains limited, and coupled with robust risk controls and comprehensive receivables insurance, this can alleviate balance sheet concerns. The bank expects ISG to remain the main profit engine, with second-quarter revenue up 135% year-on-year and operating margin maintained at 9%.