- Lenovo expects PC unit sales to face pressure from lack of memory
- RAM shortages create operational tension at Lenovo’s hardware divisions
- AI server business posted high double-digit growth driven by Nvidia-based deployments
Lenovo has expressed growing concerns about tightening memory supply, even as it reported solid revenue growth in its most recent financial quarter.
The world’s largest PC maker reported better-than-expected results but warned that hardware shipments could slow as component constraints intensify across the industry.
Chief Executive Yang Yuanqing said the company had raised prices to compensate for rising memory costs, telling PK Press Club: “We expect sales of PC units to face pressure, but we believe we can still increase revenue and maintain profitability.” »
Financial performance increases despite growing operational pressures
Lenovo’s third-quarter revenue rose 18% year-over-year to $22.2 billion, beating market expectations, while adjusted net profit, which excludes one-time items and non-cash charges, climbed 36% to $589 million.
However, reported net profit fell 21% to $546 million, largely due to a $285 million restructuring charge related to internal changes, which the company says will reduce costs by up to $200 million over three years.
Despite overall growth, the company acknowledged that RAM shortages were creating operational strains.
Yang’s remarks reflect a growing tension between high demand and limited availability of components.
Lenovo’s core PC, tablets and smartphones division, which generates around 70% of total revenue, recorded a 14.3% sales increase during the period.
The growth comes as the broader PC market faces supply constraints related to memory chips increasingly allocated to artificial intelligence systems.
Industry observers have highlighted demand for AI infrastructure as a key factor reshaping semiconductor allocation models.
At the same time, Lenovo is accelerating the expansion of servers designed for artificial intelligence inference workloads.
Its digital infrastructure group reported 31% revenue growth, although it recorded an operating loss of $11 million due to continued investments in developing AI capabilities.
The company also reported high double-digit revenue growth in its AI server business, supported by the deployment of rack-scale systems based on Nvidia’s GB200 NVL72 design.
Yang said demand for AI is shifting from training large language models to inference applications, leading to adjustments in Lenovo’s server portfolio.
The company expects the AI infrastructure market to triple by 2028 and recently introduced new enterprise servers for inference workloads in collaboration with AMD.
The warning on PC shipments suggests that even dominant manufacturers are not immune to semiconductor volatility.
Whether higher prices and AI expansion can fully offset shipping pressure depends on how long memory supply remains constrained and how quickly production capacity adapts to changes in demand.
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