Cloud service providers' demand for AI servers is surging, Lenovo (00992): We provide products to eight out of the top ten.

According to industry forecasts, the artificial intelligence server market is expected to grow at a compound annual growth rate of 25% from 2024 to 2029. This expected momentum reflects a deeper integration of artificial intelligence with key areas such as cloud computing, edge computing, and data analytics. Currently, despite expected reductions in delivery times, the demand for AI GPUs still outstrips supply. With the continuous growth in demand for artificial intelligence, global CSP suppliers are seeing a continual increase in orders. According to a report by Trendforce, by 2024, Microsoft, Google, AWS, and Meta will account for over 60% of global demand for high-end artificial intelligence servers. Microsoft will account for 20.2% of the demand, followed by Google (16.6%), AWS (16%), and Meta (10.8%). Kirk Skaugen, Executive Vice President of LENOVO GROUP (00992) and President of the Infrastructure Solutions Group (ISG), recently stated that Lenovo is somewhat unique compared to its two major competitors in the infrastructure field, as 8 out of the top 10 cloud providers use Lenovo's server products and services, a feat their main competitors cannot achieve. Looking at Lenovo's financial reports, 40-50% are from public cloud, and 50% are from on-premise deployments. Lenovo has numerous customers in public cloud, private cloud, and hybrid cloud environments. Kirk Skaugen added that three years ago, Lenovo invested $1.2 billion in the field of artificial intelligence, and now they have invested another $1 billion. Lenovo has four global artificial intelligence innovation centers and now offers over 165 validated Lenovo artificial intelligence vertical solutions that can be deployed through Lenovo's global professional services.