Shares of Lenovo (LNVGY) are up 20% after the Hong Kong-based personal computer maker reported that its revenue from artificial intelligence (A.I.) has more than doubled.
Lenovo, which competes against Dell (DELL) and HP Inc. (HPQ), said that its revenue for this year’s first quarter reached $21.6 billion U.S., up 27% year-over-year.
It was the biggest growth rate at the company in five years. Lenovo’s net income grew six-fold to reach $521 million U.S. Full-year results were a record for the technology company.
Management attributed the strong financial results to A.I.-related revenue, which surged 84% in the latest quarter to account for more than a third of total revenue.
The A.I. category includes electronic devices such as personal computers and smartphones that contain neural processing units, as well as servers that have graphics processing units (GPUs).
Looking ahead, management said that Lenovo aims to become a $100 billion U.S. company within the next two years, with most of that growth tied to A.I.
Lenovo is the world’s top personal computer maker, with a global market share of 24.4%.
Prior to today (May 22), Lenovo’s stock, which trades on the over-the-counter market in New York, had risen 38% over the last 12 months to trade at $33.92 U.S. per share.
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