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Article: China’s Lenovo warns of ‘prolonged’ memory crunch, looks to AI for rebound

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5 / 10

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Lenovo reported a significant profit drop despite revenue growth, attributing this to an unprecedented and prolonged surge in memory chip costs. The company's sales growth was primarily driven by a strong increase in demand for its AI-related businesses.

The main topics covered are Lenovo's financial performance, the memory chip shortage impacting costs, and the strategic bet on AI-powered devices and services for future growth.

Original URL

https://www.scmp.com/tech/big-tech/article/3343355/chinas-lenovo-warns-prolonged-memory-crunch-looks-ai-rebound?utm_source=rss_feed

Source Feed

Big Tech - South China Morning Post

Published Date

2026-02-12 12:14

Fetched Date

2026-03-04 14:30

Processed Date

2026-03-04 15:20

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Raw Extracted Content

China’s Lenovo warns of ‘prolonged’ memory crunch, looks to AI for rebound
Top PC maker posts a 21 per cent profit drop amid chip squeeze, but bets on AI-powered devices to sustain growth amid industry upheaval
Yang described the surge in memory costs as unprecedented and persistent, adding that the prices for dynamic random-access memory doubled in the current quarter, after a 40 to 50 per cent rise in the previous quarter.
The costs weighed on Lenovo’s bottom line. The Beijing-based company reported a net income of US$546 million in the three months to December 31, even as its revenue jumped 18 per cent to US$22.2 billion from US$18.8 billion in the period.
Sales growth was driven by demand for AI-related businesses, spanning PCs and server infrastructure to software. This segment grew 72 per cent to account for nearly one-third of Lenovo’s overall revenue in the quarter.