- Lenovo expects PC unit sales to face pressure from memory shortage
- RAM shortage is creating operational strain on Lenovo’s hardware divisions
- AI server business showed high double-digit growth thanks to Nvidia-based implementations
Lenovo has expressed growing concern about memory supply shortages, even as it reported strong revenue growth in its latest financial quarter.
The world’s largest PC maker delivered better-than-expected results but warned that hardware shipments could slow as component constraints tighten across the industry.
Chief Executive Yang Yuanqing said the company has raised prices to offset rising memory costs, telling PakGazette: “We expect PC unit sales to face pressure, but we believe we can still grow revenue and maintain profitability.”
Financial performance grows despite increasing operating pressures
Lenovo’s third-quarter revenue rose 18% year over year to $22.2 billion, beating market expectations, as adjusted net profit, which excludes one-time items and non-cash charges, rose 36% to $589 million.
However, reported net profit fell 21% to $546 million, largely due to a $285 million restructuring charge tied to internal changes, which the company says will reduce costs by up to $200 million over three years.
Despite the headline growth, the company acknowledged that the RAM shortage is creating operational strain.
Yang’s comments reflect the growing tension between strong demand and limited availability of components.
Lenovo’s core PC, tablet and smartphone division, which generates about 70% of total revenue, posted a 14.3% increase in sales during the period.
This growth comes as the broader PC market faces supply constraints related to memory chips increasingly 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 AI inference workloads.
Its digital infrastructure group posted revenue growth of 31%, although it posted an operating loss of $11 million due to continued investment in expanding 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 noted that demand for AI is shifting from training large language models to inference applications, which is causing 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 collaboration with AMD.
The warning on PC shipments suggests that even dominant manufacturers are not safe from semiconductor volatility.
Whether higher prices and the expansion of AI can fully offset shipping pressure depends on how long memory supply remains limited and how quickly production capacity adapts to changes in demand.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
