Lenovo Group (HKG: 0992) saw its share price climb more than 4% during intraday trading on Thursday, driven by robust demand for AI servers. At the time of writing, the stock was up 3.2%, trading at HK$31.58, with a trading turnover of HK$600 million.

The market optimism was fueled by Dell Technologies, which reported record-breaking second-quarter revenue fueled by strong AI server demand and significantly raised its full-year revenue guidance. Dell's shares skyrocketed 15.81% overnight. For its fiscal 2027 second quarter, Dell achieved quarterly revenue of $47 billion, a 58% year-over-year increase, marking a historic high. Simultaneously, Dell lifted its fiscal 2027 full-year revenue forecast substantially to $192 billion.

Notably, Dell's AI server orders reached a record $60.9 billion during the quarter, with the order backlog for AI servers hitting $95 billion at the quarter's end. This positive industry momentum mirrors Lenovo's own strong performance. In its fiscal first-quarter results released last month, Lenovo highlighted rapid growth and a healthy order pipeline in its AI business. The company's AI server reserve orders jumped sharply from RMB 140 billion in the previous fiscal quarter to RMB 360 billion. Revenue from AI-related businesses surged 60% year-over-year to RMB 63.4 billion, an all-time high, accounting for approximately 35% of the group's total revenue. Furthermore, AI services revenue grew 141% year-over-year.

Analysts at China Securities believe that the simultaneous increase in both volume and pricing for AI servers is driving improved profitability across the sector, suggesting that the industry chain's benefits are poised to be consistently realized.