Best month since 1999! Lenovo’s stock price doubled in May, soaring by 109%.

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Lenovo Group is experiencing its strongest monthly rally since 1999, with growth expectations driven by artificial intelligence becoming the core engine of this surge.

On Friday, May 29, Lenovo’s stock price soared up to 31% during the session, with a cumulative monthly gain of 109%, potentially setting the biggest single-month increase since 1999.

The latest fiscal year results show that AI-related revenue effectively offset the pressure from rising storage chip costs, allowing Lenovo to keep its profit margins stable. This has also solidified its position as the best-performing stock in the Hang Seng China Enterprises Index so far this year. In addition, Goldman Sachs has more than doubled Lenovo’s target price, further boosting market sentiment.

Dell issued optimistic guidance supported by strong demand for AI servers, driving a broad rise in Asian computer stocks, from which Lenovo directly benefited. Meanwhile, the Hang Seng Tech Index has dropped about 12% this year, as internet platform companies face profitability pressure from heavy investment in AI hardware and infrastructure. Lenovo’s strong rally stands out in the Hong Kong tech sector.

AI Server Demand Spreads, Dell’s Results Drive Positive Transmission

This round of Lenovo’s accelerated stock price surge is closely related to Dell Technologies’ strong guidance. After Dell released a bullish outlook tied to AI server demand, investor optimism quickly spread to similar Asian companies, and Lenovo is increasingly viewed as a potential beneficiary of AI infrastructure by market participants.

Bloomberg Industry Research analyst Steven Tseng said:

AI server growth is clearly a major driver, and demand is spreading from hyperscale cloud service providers to enterprise-side AI inference needs, which is a clear boon for traditional server OEMs like Lenovo and Dell.

Lenovo’s current fiscal year results indicate that the company maintained stable profit margins even under pressure from storage chip prices, demonstrating stronger resilience compared to smaller competitors. The growth prospects of AI server business and AI agent business are widely recognized in the market, and Goldman Sachs’ sharp target price upgrade has further ignited investor buying enthusiasm.

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