Shares of Lenovo Group (00992) have climbed nearly 6% in Thursday's trading session, with the stock last up 5.86% at HK$32.14, on turnover of HK$2.15 billion.

Sentiment has been bolstered by a string of better-than-expected earnings reports from three major AI server vendors, reinforcing the narrative that demand for AI infrastructure continues to expand at a rapid clip. Within this backdrop, Lenovo's recently released first-quarter results have stood out, showcasing breakneck growth in its AI business alongside a formidable order pipeline.

According to the company's disclosures, its reserve orders for AI servers have surged from RMB 140 billion in the prior fiscal quarter to a staggering RMB 360 billion. Revenue from AI-related operations jumped 60% year-over-year to RMB 63.4 billion, marking an all-time high for the segment.

Looking ahead, analysts at Caitong Securities have run the numbers even after fully accounting for potential share dilution from outstanding convertible bonds and warrant exercises. Their projections place target prices for Lenovo at HK$58.6 for FY2026/27 and HK$72.2 for FY2027/28, implying potential upside of over 90% and 140%, respectively, from current levels.