Core Viewpoint - Nomura Securities has upgraded Lenovo's rating to Buy and raised the target price to HKD 14, indicating a potential upside of 38% from the current stock price [1] Group 1: Rating Upgrade and Target Price - The upgrade is attributed to Lenovo's stock price being in a consolidation phase over the past six months, presenting a buying opportunity [1] - The target price increase is based on a projected earnings per share (EPS) of USD 0.15 for fiscal year 2026, applying a 12x price-to-earnings (P/E) ratio, compared to the previous EPS estimate of USD 0.14 [1] - Lenovo's current trading P/E is 8.6 times the expected EPS for fiscal year 2026 [1] Group 2: Market Demand and Performance Outlook - Strong demand for general servers and an increase in PC market share are expected to support Lenovo's performance, with potential earnings exceeding expectations for the April to June period [1] - The shift in capital expenditure from AI servers to general servers by leading clients, including international hyperscale companies and Chinese internet firms, is anticipated to drive server revenue growth [1] - Lenovo has gained market share in the U.S. and EU from competitors like Dell and HP, which will contribute positively to overall sales and profitability in the April to June period [1] Group 3: Future Projections - Looking ahead to 2026, Lenovo is expected to benefit from rising demand, particularly from Microsoft, with the recovery of H20 server shipments likely to generate additional revenue in the December quarter [2] - Despite early order pull-ins in the PC supply chain in the first half of 2025, the impact on Lenovo's PC shipment forecasts for the remainder of the year is expected to be limited, allowing for continued market share growth [2]

Core Viewpoint - Nomura Securities has upgraded Lenovo's rating to Buy with a target price of HKD 14, indicating a potential upside of 38% from the current stock price [1] Group 1: Rating Upgrade and Price Target - The upgrade is attributed to Lenovo's stock being in a consolidation phase over the past six months, presenting a buying opportunity [1] - The target price adjustment is based on a projected earnings per share (EPS) of USD 0.15 for fiscal year 2026, applying a 12x price-to-earnings (P/E) ratio, compared to the previous EPS estimate of USD 0.14 [1] - Lenovo's current trading P/E is 8.6 times the expected EPS for fiscal year 2026 [1] Group 2: Market Demand and Performance Outlook - Strong demand for general servers and an increase in PC market share are expected to support Lenovo's performance, with potential earnings exceeding expectations for the April to June period [1] - The shift in capital expenditure from AI servers to general servers by leading clients is anticipated to drive revenue growth in the server segment [1] - Lenovo has gained market share in the U.S. and EU from competitors like Dell and HP, which is expected to enhance overall sales and profitability for the April to June period [1] Group 3: Future Projections - Looking ahead to 2026, Lenovo is expected to benefit from rising demand, particularly with the anticipated recovery of H20 server shipments contributing additional revenue in the December quarter [2] - Despite early order pull-ins in the PC supply chain, the impact on Lenovo's PC shipment forecasts for the remainder of the year is expected to be limited, allowing for continued market share growth [2]

Core Viewpoint - Nvidia has resumed sales of the H20 to China, leading to a significant increase in inquiries from customers, which may result in price adjustments in the market [1] Group 1: Sales Resumption - Nvidia's CEO Jensen Huang announced the restart of H20 sales to China [1] - Authorized distributors in China reported a surge in inquiries regarding the H20 following the sales resumption [1] Group 2: Market Impact - During the H20 sales ban, distributors relied on existing inventory to provide H20 computing services, leading to a temporary price increase due to limited supply [1] - The resumption of sales is expected to increase market supply, which may lead to a decrease in prices for H20 servers [1]