Financial Data and Key Metrics Changes - Lenovo reported a record high first quarter revenue of $18.8 billion, representing a 22% year-on-year growth [3][16] - Net income on a non-HKFRS basis increased by 22% year-on-year to $389 million, while on an HKFRS basis, net income more than doubled to $500 million [4][17] - Non-PC revenue mix reached 47% of total group revenues, indicating a significant diversification in revenue streams [5][17] Business Line Data and Key Metrics Changes - The Intelligent Devices Group (IDG) generated $13.5 billion in revenue, an 18% year-on-year increase, with PCs and related businesses growing by 19% [6][25] - The Solutions and Services Group (SSG) achieved a record revenue of $2.3 billion, growing 20% year-on-year with an operating margin of 22% [11][30] - The Infrastructure Solutions Group (ISG) saw a 36% year-on-year revenue growth, reaching $4.3 billion, driven by strong demand in both CSP and SMB segments [8][28] Market Data and Key Metrics Changes - In China, revenue surged by 36% year-on-year, with significant contributions from AI PC shipments [19] - The Asia Pacific region, excluding China, experienced a 39% year-on-year revenue growth, with market share gains in Japan and India [20] - In the Americas, Lenovo achieved PC market share gains for the ninth consecutive quarter, while EMEA saw record bookings in Device as a Service [20] Company Strategy and Development Direction - Lenovo is executing a hybrid AI strategy aimed at capitalizing on AI opportunities, focusing on personal and enterprise AI innovations [5][12] - The company is committed to investing in AI infrastructure and R&D, with a 10% year-on-year increase in R&D spending to $524 million [22][61] - Lenovo aims to maintain its competitive edge through a unique ODM Plus model, combining in-house manufacturing with ODM to enhance flexibility and resilience [51][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating future uncertainties, highlighting strong order visibility and market demand for PCs [38] - The company remains focused on expanding market share and profitability despite short-term pressures on margins due to strategic investments [11][29] - Management emphasized the importance of continuous innovation and adaptation to market shifts, particularly in AI and infrastructure [10][12] Other Important Information - Lenovo's cash flow from operations reached $1.2 billion, marking the highest level in the past eleven quarters, with free cash flow rebounding to $751 million [20][21] - The company reported a significant increase in its AI infrastructure business, with revenues more than doubling year-on-year [18][29] Q&A Session Summary Question: Trends for PC in Q3 and Q4 2025 - Management noted strong PC performance and optimistic outlook for the financial year, with good order visibility and growing demand [38] Question: Business progress in the Middle East - Lenovo is ahead of schedule in building a manufacturing facility in the Middle East, aiming to capture additional market share [42][44] Question: Drivers behind SSG growth - The shift from CapEx to OpEx models is driving strong growth in Device as a Service and Infrastructure as a Service across all geographies [46][48] Question: Impact of tariff uncertainties on supply chain - Management indicated minimal impact from tariff uncertainties, attributing strong performance to Lenovo's competitive business model [50][52] Question: Margin outlook and drivers - The decline in margins was attributed to the growth of the ISG business, particularly in AI servers, which have lower gross margins [58] Question: R&D investment growth outlook - R&D remains a priority, with continued investment planned to support the hybrid AI strategy and drive innovation [62] Question: Sustaining market share gains - Management expressed confidence in sustaining market share gains through innovation and operational excellence [66] Question: AI server sales growth drivers - AI server sales growth is driven by demand across all segments and geographies, with significant growth noted in China [80] Question: Strategy for gaining share in AIPC market - Lenovo's strategy focuses on R&D, innovation, and leveraging its comprehensive product ecosystem to gain market share [84]

Shares of Super Micro Computer (SMCI -6.10%) are falling on Wednesday. The stock lost 6.7% as of 1:36 p.m. ET, and as much as 7.1% earlier in the day. The leg down comes as the S&P 500 (^GSPC -0.24%) gained 0.4% and the Nasdaq Composite (^IXIC -0.59%) lost 0.1% on the day.A miss from SupermicroThe artificial intelligence (AI) server provider released its Q3 2025 earnings yesterday after the market closed. The numbers underwhelmed investors.Supermicro reported adjusted earnings per share (EPS) of $0.31 on re ...