Lenovo (00992) showed strong performance in high-performance computing business: YoY growth of 12%, double the industry average.

On November 16, 2023, LENOVO GROUP announced its financial results for the second quarter of the 2023/24 fiscal year, ending on September 30, 2023. The overall revenue reached 104.4 billion RMB, showing consecutive quarterly growth. The gross profit margin increased to 17.5% on a year-on-year basis, reaching a new historical high for the second quarter. Non-PC business accounted for over 40%, showing an increase of nearly 3 percentage points compared to the previous year. LENOVO GROUP stated that the overall performance of the ISG business is still constrained by multiple challenges, such as slow platform migration and shortages of key components. However, high-performance computing revenue grew by 12% year-on-year, exceeding the industry growth rate by 2 times and demonstrating a strong business trend. With the emergence of generative artificial intelligence applications, the demand for computing power is exponentially increasing. Meeting the growing demand for computing power in enterprises and accurately matching user business scenarios has become an important issue for computing service providers. Currently, Lenovo has two major server product lines, Qian Tian and ThinkSystem. As of October 1, 2023, Lenovo servers have achieved a total of 483 performance testing world records.