- Lenovo reacts early to tighter memory supplies driven by aggressive AI demand
- Semiconductor giants are shifting production towards high-bandwidth memory for AI servers
- Traditional memory output is shrinking, while global price pressures are rapidly intensifying
Lenovo has confirmed it is stockpiling memory chips and other key components in response to a tighter global supply chain pressured by demand for artificial intelligence.
The company’s management described the situation as an unprecedented AI squeeze, with accelerated purchases by data center operators and cloud platforms limiting availability.
Lenovo’s inventory levels are now approximately 50% higher than normal, affecting its entire range of devices, including the mini PC segment.
Why the memory market is under pressure
The increase in memory prices is linked to a broader shift within the semiconductor industry.
Major manufacturers, including Samsung and SK Hynix, have redirected significant manufacturing capacity toward high-bandwidth memory used for AI servers.
This transition has reduced the output of traditional memory chips typically used in consumer PCs, smartphones and gaming devices.
As a result, global memory prices have risen steadily in recent months, affecting manufacturers across the electronics industry.
This situation is already affecting several product lines, particularly systems aimed at enterprise laptop buyers who rely on stable availability of components.
Lenovo executives said the build is part of a long-term plan to avoid disruption through 2026.
The company recently signed long-term supply agreements to ensure memory availability throughout next year
Its CEO also said the firm believes these arrangements represent optimal contracts under current conditions.
“We signed the optimal contract with key component suppliers to ensure we have enough supplies for next year,” Yang Yuanqing said.
“Overall, we don’t see a bubble because the next phase will be AI democratization.”
Lenovo acknowledged that higher memory costs could raise consumer electronics prices in coming quarters and noted that AI-related spending had already weighed on its latest earnings, with additional costs partially offsetting steady PC and device sales.
Despite that, Lenovo said it aims to maintain sales momentum and avoid passing rising component prices directly to consumers whenever possible.
Other firms, including Xiaomi, warned that smartphone buyers could face increased prices next year due to the same supply constraints.
Having said that, Lenovo’s latest financial results showed revenue growth and improved adjusted earnings, even as its shares remain lower for the year.
However, semiconductor manufacturers expect AI-driven demand to continue to shift manufacturing priorities, which could keep supply tight to traditional memory products.
Via Bloomberg
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