Lenovo reported third-quarter revenue of $19.7 billion, up 24 percent from a year ago, partly driven by growth in AI computing. Net income was $359 million.

Lenovo's PC shipments rose 3% to 16.5 million units in the same period, maintaining a 24% market share, research firm IDC said.

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Lenovo Chairman Yang Yuanqing revealed that the company will open more factories outside China. Photo: China Daily

Demand for AI computers has become a major growth driver for PC makers. Lenovo launched its first AI PC in May in China and overseas in September.

The company expects AI PCs to account for 25% of sales by 2025 and 80% by 2027.

Lenovo also expanded its product portfolio, including AI software and servers, to capitalize on the trend. Its Infrastructure Solutions division saw revenue increase more than 60% thanks to demand for AI processing servers in data centers.

The Solutions and Services division posted revenue of $2.2 billion, up from $1.9 billion a year earlier.

Lenovo will continue to diversify its supply chain and open more factories outside China amid global geopolitical uncertainty, according to Chairman Yang Yuanqing.

Most of Lenovo's factories are in China, but this could be a weakness if President-elect Donald Trump imposes a 60% tax on imports from the country.

The world's largest PC maker operates more than 30 factories in nine different countries. Mr. Yang revealed plans to open another factory in Saudi Arabia after an investment agreement with the kingdom's Public Investment Fund.

(According to Beamstart)