Every operational segment is seeing double-digit growth, including personal computing and mobile (+17%), servers (+32%) and services (+19%). Consolidated revenue rose 20%, while net income surged 42%.

This performance allows the Hong Kong-listed group to roughly double its revenue and quadruple its profit over 10 years. The only blemish on this stellar balance sheet is the sharp inflation of stock-option compensation, which is forcing the company to actively buy back shares to mitigate dilution.

AI-related sales now represent 38% of revenue for the world's leading PC maker, which is even ahead of HP, Dell, Apple and Acer. This tsunami provides a providential growth path and has enabled the company to return to its valuation peaks.

Valuations have now reached a multiple of 20x earnings, compared to a 10-year average of 10x earnings and, as many recall, a floor of 5x earnings hit: and even briefly breached: in 2023. It is worth noting that the stock's valuation has historically stalled at this ceiling. We ask, will AI change the game?

Lenovo reports margins that are half those of HP and a more erratic ability to generate free cash flow. However, its growth performance is significantly above that of the American group, which is stagnating, due to a lack of exposure to the server market: a segment that moved to HP Enterprise following Hewlett-Packard's split into two distinct entities.

On this subject, also refer to HP completely ignored by investors despite a solid operational track record, published in March.