Lenovo has posted positive incomes in its quarterly projects, seeing a net income in Q4 2024, beating analysts’ projected figure of $365 million. The figure also doubles the previous year’s figure at $692 million.
The company saw its revenue climb by 20% year-to-year to $18 billion, breaking from the slump that enveloped the general PC market. Lenovo’s boost has been linked to its foray into the AI industry.
AI optimism propels Lenovo to market lead
Lenovo recently recorded a boost in the PC market, thanks to its AI investment, after years of stagnated sales. Although the AI hype has given the market optimism, other companies like Dell are still far behind Lenovo when it comes to the integration of AI. According to reports, Lenovo sold about 16 million PCs globally, compared to HP’s 13 million, and Dell’s 9 million. Lenovo accounts for about 24% of the global PC market share.
Ryan Reith, Group Vice President of IDC, a company that tracks these developments said, “On-device AI for PCs is inevitable. Therefore, right now it is about suppliers trying to be patient as their customers are dealing with headwinds unrelated to these technological advancements.” Lenovo recorded over $692 million in net income in Q4 2024, beating the initially projected $365 million, with a 20% year-on-year increase in revenue to $18.8 billion.
Winners and losers in the AI struggle
Other firms in the tech space have also been enjoying the boom, with Nvidia seeing a high amount of patronage due to its GPU. The patronage took its stock to 250% since last year, with Microsoft and Google also monetizing their cloud business by selling it to AI businesses and companies that need the solutions.
Meanwhile, other PC manufacturers who are direct rivals of Lenovo have been struggling due to their slow adoption of AI. Acer and Asus struggled in 2024, with Intel also seeing the same fate. However, analysts are predicting that companies like HP and Dell have what it takes to see a boom in the market. The firms are predicted to see increased patronage as they begin to answer to users’ demand for more AI integration in their PCs.