Lenovo, the world's largest PC maker, reported a 20% increase in revenue for the third quarter of 2024 despite the volatility of the global PC market. The company was helped by demand for computing infrastructure for artificial intelligence, Bloomberg reports.
The company posted sales of $18.8 billion in the latest quarter, beating estimates of $17.9 billion and up 20% from the same period last year. Net income was $692.7 million, but most of that — $282 million — was a one-time payment from deferred tax credits.
Lenovo's revenue growth was driven largely by its data center server business and AI development. PC shipments also grew 4.8% for the first time in a long time in the fourth quarter of 2024. The company hopes that AI will help boost PC sales in 2025.
Investors expect the PC market to benefit from increased demand for new AI features. Manufacturers, including Lenovo, are integrating the technology into all new products to stay competitive. Therefore, companies are hoping to increase sales through the implementation of AI.
"On-device AI for PCs is inevitable. Therefore, right now it is about suppliers trying to be patient as their customers are dealing with headwinds unrelated to these technology advancements," said Ryan Reith, vice president of IDC's Worldwide Device Tracking Group.