- Lenovo expects PC unit sales to face pressure from memory shortages
- RAM shortages create operational strain across Lenovo’s hardware divisions
- AI server business showed high double-digit growth from Nvidia-based deployments
Lenovo has signaled growing concern over a tightening of memory supplies, even as it reported solid revenue growth in its latest fiscal quarter.
The world’s largest PC maker delivered stronger-than-expected top-line results but warned that hardware shipments could slow as component restrictions intensify in the industry.
CEO Yang Yuanqing said the company has raised prices to offset rising memory costs, telling Pakinomist: “We expect PC unit sales to face pressure, but believe we can still increase revenue and maintain profitability.”
Financial results are growing despite increasing operating pressure
Lenovo’s third-quarter revenue rose 18% year over year to $22.2 billion, beating market expectations as adjusted net income, which excludes one-time items and non-cash charges, rose 36% to $589 million.
However, reported net income fell 21% to $546 million, largely due to a $285 million restructuring charge tied to internal changes that the company said will reduce costs by up to $200 million over three years.
Despite headline growth, the company acknowledged that RAM shortages are creating operational strain.
Yang’s remarks reflect growing tensions between strong demand and limited availability of components.
Lenovo’s core PC, tablet and smartphone division, which generates about 70% of total revenue, recorded a 14.3% increase in sales during the period.
This growth comes as the broader PC market faces supply constraints associated with memory chips increasingly being allocated to artificial intelligence systems.
Industry observers have pointed to demand for AI infrastructure as a key factor reshaping semiconductor allocation patterns.
At the same time, Lenovo is accelerating the expansion of servers designed for artificial intelligence inference workloads.
Its digital infrastructure group posted revenue growth of 31%, although it recorded an operating loss of $11 million due to continued investment in scaling AI capabilities.
The company also reported high double-digit revenue growth in its AI server business, supported by deployments of rack-scale systems based on Nvidia’s GB200 NVL72 design.
Yang indicated that AI demand is shifting from training large language models to inference applications, prompting adjustments in Lenovo’s server portfolio.
The company expects the AI ​​infrastructure market to triple by 2028 and recently introduced new enterprise servers for inference workloads in partnership with AMD.
The warning on PC shipments suggests that even dominant manufacturers are not insulated from semiconductor volatility.
Whether higher prices and AI expansion can fully offset shipping pressure depends on how long memory supply remains constrained and how quickly manufacturing capacity adapts to changes in demand.
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