Lenovo ’ s Shares Sink After PC, AI Hardware Rivals Squeeze Profit

(Bloomberg) — Lenovo Group Ltd.’s shares fell their most in more than a month after reporting a worse-than-expected 64% drop in earnings, reflecting competitive pressures in the AI server and PC markets.

The Chinese company reported net income of $90 million for the March quarter versus projections for more than $200 million, reflecting a loss on derivatives and pricing pressures in a stagnant PC market. Its stock slid as much as 5.4% in Hong Kong, despite a faster-than-anticipated 23% rise in sales to about $17 billion.