Hong kong: Shares of Chinese technology company Lenovo climbed 20% in Hong Kong trading on Thursday after stronger-than-expected quarterly revenue reinforced investor optimism over its artificial intelligence business. The stock reached a record high and extended its gains since the beginning of the year to more than 280%.

According to Anadolu Agency, Lenovo reported record revenue of $26.9 billion for the first quarter of its 2026-27 fiscal year, up 43% from a year earlier and marking its fastest growth in five years. Net income climbed 176% year-on-year to $1.1 billion, exceeding $1 billion for the first time. AI-related revenue rose 60% to $9.3 billion and represented 35% of the company's total revenue, while research and development spending increased 30%.

Lenovo's infrastructure solutions division, which includes servers and data center products, nearly doubled its revenue to a record $8.5 billion. Its operating profit reached $777 million, with the operating margin rising to an all-time high of 9.1%. The company's AI server sales pipeline expanded 157% from the previous quarter to $54 billion amid growing demand from cloud providers and corporate customers.

Revenue from Lenovo's solutions and services division increased 28% to $2.9 billion, while its operating profit rose 39% to $697 million. Its devices business, covering computers, tablets, and smartphones, posted revenue growth of 27%. Lenovo said its global PC market share reached 24.2%, while its share of the AI-enabled PC market rose to 25.1%. CEO Yuanqing Yang stated AI had emerged as a 'clear growth engine' across each of the company's business divisions.