에 대한 최신 뉴스 Lenovo Group (OTC:LNVGY) 주식

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Lenovo is a global technology hardware company with a leading market share in personal computers. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 13% of overall sales in fiscal 2024, from 6% in 2015.

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애플(NASDAQ:AAPL)은 2분기에 개인용 컴퓨터 출하량이 20.8% 증가하여 글로벌 PC 제조업체 중 가장 큰 성장을 기록했다. 어떤 일이 (What Happened): 역사적 불황을 겪었던 PC 산업이 2분기 연속 성장세를 보이며 회복 조짐을 보이고 있다.

애플, 전 세계 PC 제조업체들 중 가장 큰 성장률 기록, 출하량이 20.8% 급증 - IDC

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Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) <a href="https://www.benzinga.com/pressreleases/25/05/g45374688/amd-unveils-epyc-4005-series-processors-delivering-workload-optimized-solutions-for-entry-level-en" target="_blank" rel="noreferrer noopener">announced the launch</a> of AMD EPYC 4005 Series processors on Tuesday.
These purpose-built processors enable right-sized solutions with enterprise-class features and leadership performance for small and medium businesses and hosted IT service providers.
AMD EPYC 4005 Series CPUs deliver the performance, features, and efficiency growing businesses need to power everything from enterprise applications and virtualized environments to dedicated, all-day hosted services in the cloud.
Also Read: <a href="https://www.benzinga.com/25/05/45260942/amd-shifts-chip-orders-to-taiwan-semiconductor-dropping-samsung-in-big-manufacturing-move" target="_blank" rel="noreferrer noopener">Advanced Micro Devices Drops Samsung, Shifts Chip Orders To Taiwan Semiconductor</a>
Utilizing the AM5 socket used for the AMD EPYC 4004 Series CPUs, the EPYC 4005 Series delivers an innovative compute solution for a broad set of enterprise-class form factors like servers, blades, and towers.
AMD EPYC 4005 Series processors enable various broadly deployed enterprise solutions.
Leading partners and customers support them, including Altos, ASRock Rack, Gigabyte, Lenovo (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>), and Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
AMD stock plunged over 27% in the last 12 months amid intense rivalry with Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) for GPU market share.
AMD reported <a target="_blank" href="https://www.benzinga.com/news/earnings/25/05/45237261/amd-q1-earnings-revenue-eps-beat-driven-by-expanding-data-center-ai-momentum-chipmaker-expects-strong-growth-in-2025" rel="noreferrer noopener">first-quarter revenue</a> of $7.44 billion, up 36%, beating&nbsp;analyst estimates of $7.13 billion. The chipmaker reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share.
AMD expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion.
Wall Street analyst <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45264199/amd-market-position-is-the-best-in-the-companys-history-says-analyst" target="_blank" rel="noreferrer noopener">highlighted the company&#8217;s</a> gross margin expansion to 54%, expecting strong sequential growth in the Client and Gaming segments. BofA Securities analyst Vivek Arya highlighted &#8220;multiple growth cylinders&#8221; and continued market share gains in PC/server CPU against Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>). 
Price Action: AMD stock is trading up 3.34% to $111.73 at the last check on Tuesday.
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AMD Launches EPYC 4005 Chips For Small Business And Cloud

<a href="https://www.usitc.gov/press_room/news_release/2025/er0321_66680.htm" title="https://www.usitc.gov/press_room/news_release/2025/er0321_66680.htm">https://www.usitc.gov/press_room/news_release/2025/er0321_66680.htm</a>

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'USITC Institutes Section 337 Investigation Of Certain Foreign-fabricated Semiconductor Devices, Products Containing The Same, And Components Thereof' - U.S. International Trade Commission

SentinelOne, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) stock is trading lower on Thursday. The company reported <a target="_blank" href="https://www.benzinga.com/news/earnings/25/03/44291341/sentinelone-q4-earnings-revenue-beat-eps-beat-shares-sink-on-soft-guidance" rel="noreferrer noopener">fourth-quarter financial results</a> Wednesday, and multiple Wall Street firms lowered their respective price targets on the stock.
SentinelOne reported fourth-quarter revenue of $225.5 million, up 29%, beating the&nbsp;consensus estimate of $222.25 million. The cybersecurity company reported four-quarter adjusted earnings of four cents per share, beating one cent per share estimates.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/03/44221467/this-sentinelone-analyst-cuts-forecast-ahead-of-q4-projects-marginal-upside-to-arr-better-profitability" rel="noreferrer noopener">This SentinelOne Analyst Cuts Forecast Ahead Of Q4; Projects Marginal Upside To ARR, Better Profitability</a>
SentinelOne expects first-quarter revenue of ~$228 million versus estimates of $235.18 million.&nbsp;
Scotiabank analyst Patrick Colville maintained SentinelOne with a Sector Perform and lowered the <a href="https://www.benzinga.com/quote/S/analyst-ratings" target="_blank" rel="noreferrer noopener">price target from&nbsp;$26&nbsp;to&nbsp;$19</a>.
Needham analyst&nbsp;Matt Dezort&nbsp;reiterated a Buy rating on SentinelOne and lowered the price target from&nbsp;$32 to&nbsp;$23.
WestPark Capital analyst Casey Ryan maintained SentinelOne with a Buy and a $31&nbsp;price target.
JPMorgan analyst Brian Essex maintained an Overweight on SentinelOne with a price target of $22, down from $27.
Scotiabank: SentinelOne&#8217;s fourth-quarter net new ARR came in just a hair below consensus, and the fiscal 2026 guide implies that the net new ARR will be up just 2% next year. 
Scotiabank&#8217;s Colville noted investors were hoping for more based on the Lenovo Group Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>) partnership announced in 2024.
SentinelOne is retiring its legacy Deception product, which negatively impacted fourth-quarter ARR and is expected to impact fiscal 2026 negatively by ~$10 million. 
On a positive note, operating margin profitability flipped to positive this quarter for the first time and the company is guiding continued improvement in fiscal 2026. 
Colville projected first-quarter revenue of $228.3 million and adjusted EPS of 2 cents.
Needham: SentinelOne reported a mixed fiscal fourth quarter and offered initial guidance for fiscal 2026 that fell short of investor expectations. 
SentinelOne delivered on its goal of reaccelerating new business in the fiscal second half, driving total ARR growth of 27% to $920.1 million, which slightly missed consensus. 
Revenue guidance for fiscal first-quarter and fiscal 2026 was $8 million and $19 million below Street, respectively.
Management discussed demand trends and platform adoption driven by emerging solutions (Cloud, AI, SIEM), which comprised over 50% of fiscal 2025 new bookings. 
SentinelOne expects ~$200 million of net new ARR in fiscal 2026, resulting in ~$1.12 billion of ARR of +22% with the retirement of the legacy Deception solution weighing on fiscal first-half before new business reaccelerates in the fiscal second half.
Needham&#8217;s Dezort projected first-quarter revenue of $228 million and adjusted EPS of 2 cents.
WestPark Capital: SentinelOne reported fourth-quarter results ahead of expectations at $225.5 million and four cents compared to Street estimates of $223 million and $0.01 and WestPark Capital&#8217;s estimates of $222 million and two cents.
Annual recurring revenue (ARR) was $920.1 million, up 27%. $100K+ customers grew 25% in the quarter to 1,411.
Fiscal 2026 guidance calls for $1.007 billion-$1.012 billion, below street expectations for $1.026 billion. One driver of this lower-than-expected guidance is the retirement of a Deception module, which helped deter identity-based attacks. The impact for this product retirement is approximately $10 million in fiscal 2026, with close to a $5 million impact in the first quarter of fiscal 2026.
WestPark Capital&#8217;s Ryan projected first-quarter revenue of $228 million and EPS of three cents.
JPMorgan:&nbsp;SentinelOne delivered slightly better than expected fourth-quarter revenue growth with better profitability than expected, and initial fiscal 2026 guidance reflects better profitability and free cash flow, said JPMorgan&#8217;s Essex.
But, fourth-quarter NNARR missed consensus expectations, while fiscal 2026 guidance for ARR and revenue were also weaker than expected. A meaningful driver of the NNARR miss and weak guide was the retirement of Deception technology that was acquired when the company acquired it, along with the acquisition of Attivo Networks in 2022.
Ample customer traction, pipeline strength, strong win rates, and improving attach rates supported the underlying strength of the business, noted JPMorgan. The stock traded off after hours following the weaker-than-anticipated results and guidance, and analyst Essex expects weakness will remain near-term. 
Free cash flow could provide better valuation support once investors digest the disappointment.
Essex projected first-quarter revenue of $228 million and adjusted EPS of two cents.
S Price Action: SentinelOne stock is down 3.47% at $18.63 at publication Thursday.
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Photo: T. Schneider via Shutterstock

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SentinelOne Stock Slips As Analysts Cut Price Forecasts On Soft Guidance, ARR Miss, Product Retirement

On Thursday, <a target="_blank" href="https://www.benzinga.com/topic/lenovo" rel="noreferrer noopener">Chinese PC company</a>&nbsp;Lenovo Group Ltd&nbsp;(OTC:&nbsp;LNVGY) reported fiscal third-quarter revenue growth of&nbsp;20% year-on-year&nbsp;to $18.796 billion, beating the&nbsp;analyst consensus estimate of $15.58 billion. This marked the highest quarterly sales in the past three years and the second highest in <a target="_blank" href="https://investor.lenovo.com/en/financial/results.php" rel="noreferrer noopener">the Group&#8217;s history</a>.
All three business groups achieved double-digit year-over-year revenue growth for the third consecutive quarter.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43828018/baidus-ai-cloud-robotaxi-growth-and-accelerated-buybacks-position-it-for-a-strong-2025-analyst" rel="noreferrer noopener">Baidu&#8217;s AI Cloud, Robotaxi Growth And Accelerated Buybacks Position It For Strong 2025: Analyst</a>
The quarter&#8217;s results were driven by the Group&#8217;s focused hybrid AI strategy, the turnaround of the Infrastructure Solutions Group, and double-digit growth for both the Intelligent Devices Group and Solutions and Services Group.&nbsp;&nbsp;
The Solutions and Services Group (SSG) posted revenue growth of 12% Y/Y to $2.26 billion, a firm operating margin of 20.4%. The segment accounted for 31% of the total operating profit of the three business groups.
Managed services and Project &amp; Solution Services revenue experienced double-digit growth.
The Infrastructure Solutions Group (ISG) revenue grew 59% Y/Y to $3.94 billion, driven by solid cloud momentum and strengthening enterprise business. The segment operating margin loss improved to 0.0% versus (1.5)% Y/Y.
Intelligent Devices Group (IDG) increased 12% to $13.78 billion, driven by substantial market share gain in PC and smartphone premium sales. It marked the company&#8217;s highest PC market share in 5 years.
The PC business expanded its market leadership to almost 24.3% market share. Hybrid AI created growth opportunities for the device market, with the PC market entering a new refresh cycle and driving the smartphone market refresh cycle.
AI PC can represent ~80% of the PC industry landscape by 2027. The segment operating margin stood flat at 7.3%. Motorola&#8217;s market share is at a 5-year high, with hypergrowth in Asia Pacific and EMEA. The non-PC revenue mix during the quarter stood at over 46%.&nbsp;
Gross margin declined to 15.7% versus 16.5% a year ago due to a higher sales contribution from ISG&#8217;s cloud business, which has a lower profitability profile. The expenses-to-revenue ratio was 12.0% vs. 12.6% the prior year.&nbsp;
Net income grew by 106% Y/Y to $693 million. EPS per ADR rose to $0.0535 from&nbsp;$0.0264 a year ago.
As of December 31, 2024, cash and equivalents stood at $3.93 billion.&nbsp;
Price Action: LNVGY stock is down by 2.77% to $31.10 premarket at the last check on Thursday.
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<li><a href="https://www.benzinga.com/tech/25/02/43820868/accenture-and-infroneer-launch-ai-powered-jv-to-transform-japans-infrastructure" target="_blank" rel="noreferrer noopener">Accenture and Infroneer Launch AI-Powered JV to Transform Japan&#8217;s Infrastructure</a></li>
</ul>
Photo by Robert Way via Shutterstock

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Lenovo Q3 Earnings: 20% Revenue Jump, AI PCs and Smartphones Power Market Expansion

Lenovo Group Q3 EPS $0.0535 Up From $0.0264 YoY, Revenue $18.796B Up From $15.721B YoY

On Thursday, Chinese PC company Lenovo Group Ltd (OTC:&nbsp;LNVGY) reported a fiscal second-quarter revenue growth of&nbsp;24% year-on-year&nbsp;to $17.85 billion, beating the <a target="_blank" href="https://investor.lenovo.com/en/financial/results.php" rel="noreferrer noopener">analyst consensus estimate of $16.34 billion</a>.
The Solutions and Services Group (SSG) posted revenue growth of 13% Y/Y to $2.17 billion, with an operating margin of 20.4%, up by 40 bps Y/Y. The segment accounted for 32% of the total operating profit of the three business groups. Managed services and Project &amp; Solution Services revenue experienced double-digit growth, attributed to a solid contract backlog.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/41971559/disneys-q4-boosted-by-streaming-gains-strong-box-office-and-solid-parks-performance" rel="noreferrer noopener">Disney Q4 Earnings: Revenue And Profit Beat, Best Film Studio Performance, 3-Year Outlook And More</a>
The Infrastructure Solutions Group (ISG) revenue grew 65% Y/Y to $3.31 billion, driven by solid cloud momentum and strengthening enterprise business. High double-digit revenue growth for Storage came from aggressive cloud investment. Both the smartphone and tablet businesses delivered high double-digit revenue growth. The segment operating margin loss improved to (1.1)% versus (2.7)% Y/Y.
Intelligent Devices Group (IDG) increased 17% to $13.51 billion, driven by substantial market share gain in PC and smartphones and the rapid popularity of five feature AI PCs. The PC business expanded its market leadership to almost 24% market share. The segment operating margin stood flat at 7.3%.
The non-PC revenue mix during the quarter stood at 46%.&nbsp;Gross margin reached 15.7% versus 17.5% a year ago. The expenses-to-revenue ratio was 12.0% vs. 13.9% the prior year.&nbsp;
Net income grew by 48% Y/Y to $404 million. EPS per ADR rose to $0.0278 from <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">$0.0199 a year ago</a>.
As of September 30, 2024, cash and equivalents stood at $4.2 billion. 
Dividend: Lenovo&#8217;s Board declared an interim dividend of 8.5 Hong Kong cents per share.
Outlook: Lenovo plans to focus on boosting net income margin in the medium term and capitalize on digital transformation for sustained growth. The company finds itself well-positioned to lead the Hybrid AI shift, offering comprehensive solutions from devices to edge and cloud. It expects ongoing growth momentum across all three business units, with plans to enhance profitability.
Recently, Lenovo Group has partnered with Meta Platforms and Nvidia Corp to boost its <a target="_blank" href="https://www.benzinga.com/government/24/10/41365885/lenovos-ai-push-grows-with-meta-nvidia-collaboration-outside-china" rel="noreferrer noopener">AI capabilities in markets beyond China.</a>
At its Tech World event in Seattle, Lenovo launched &#8220;AI Now,&#8221; a personal AI assistant for PCs outside China. Built on Meta&#8217;s Llama 3.1 open-source large language model, the AI operates locally without internet access.
Lenovo also expanded its collaboration with Nvidia to roll out enterprise AI solutions. The Lenovo ThinkSystem SC777 V4 Neptune server now integrates Nvidia&#8217;s Blackwell GPUs alongside Lenovo&#8217;s water-cooling technology.
Facing risks from geopolitical tensions affecting supply chains, Lenovo employs its AI-driven Supply Chain Intelligence solution, which has already cut logistics and manufacturing costs by 20%.
Price Action: LNVGY stock closed higher by 1.14% at $24.78 on Thursday.
Photo by Robert Way via Shutterstock
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</ul>

Equities

Lenovo Q2 Earnings: Cloud Momentum, AI PCs, And Smartphone Growth Drive Revenue Beat

CORRECTION: Lenovo Group Q2 EPADS $0.0278 Up From $0.0199 YoY, Revenue $17.850B Up From $14.41B YoY

PC maker Lenovo Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGF#OTC">LNVGF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>) tapped Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to enhance its artificial intelligence (AI) capabilities in markets outside China.
The U.S. semiconductor sanctions have barred China from accessing sophisticated AI chips from U.S. chip designers like Nvidia, citing national security threats. The embargo prompted Nvidia to develop the sanction-compliant <a target="_blank" href="https://www.benzinga.com/news/24/10/41317732/whats-going-on-with-nvidia-stock-on-monday" rel="noreferrer noopener">A800, H800, and H20 chips</a>.
At its annual Tech World conference in Seattle, Lenovo introduced AI Now, a personal AI assistant for PCs sold outside China, built on Meta&#8217;s open-source Llama 3.1 large language model, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3282586/lenovo-partners-meta-nvidia-ai-outside-china" rel="noreferrer noopener">reports</a>.
Lenovo&#8217;s AI assistant operates locally without an internet connection and can use natural language prompts to perform tasks like document management, text and image generation, and device configuration.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41358664/whats-going-on-with-intel-stock-wednesday" rel="noreferrer noopener">What&#8217;s Going On With Intel Stock Wednesday?</a>
In addition to AI Now, Lenovo announced a deepened partnership with Nvidia to launch enterprise-focused AI solutions.
The new AI server, the Lenovo ThinkSystem SC777 V4 Neptune, features Nvidia&#8217;s Blackwell graphics processing units (GPUs) and Lenovo&#8217;s advanced water-cooling technology.
Lenovo faces ongoing risks tied to geopolitical tensions, particularly concerning supply chains. The company is leveraging AI to mitigate these risks through its AI-powered Supply Chain Intelligence solution, which has already reduced manufacturing and logistics costs by 20%.
Lenovo also introduced a new AI-powered PC, the ThinkPad X1 2-in-1 Gen 10 Aura Edition, and concept prototypes like the Lenovo &#8220;AI Buddy,&#8221; which assists users with daily tasks.
Lenovo reported a 20% jump in its first-quarter topline, reaching a revenue of <a target="_blank" href="https://investor.lenovo.com//en/financial/results.php" rel="noreferrer noopener">$15.4 billion</a>.
Canalys projects shipments of 44 million AI PCs in 2024, and IDC expects AI PC shipments to reach around 50 million during the year, Forbes <a target="_blank" href="https://www.forbes.com/sites/bethkindig/2024/09/12/ai-pcs-have-arrived-shipments-rising-competition-heating-up/" rel="noreferrer noopener">reported</a>.
For context, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) are vying for the <a target="_blank" href="https://www.benzinga.com/news/24/08/40347392/apple-intel-and-amd-lead-charge-in-ai-capable-pc-market-surge-report" rel="noreferrer noopener">AI PC market</a> as Nvidia rules the AI data center market.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/10/41357485/intel-partners-with-amd-to-counter-arms-rising-dominance-in-computing" target="_blank" rel="noreferrer noopener">Intel Partners With AMD To Counter Arm&#8217;s Rising Dominance in Computing</a></li>
</ul>
Photo by Robert Way via Shutterstock

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Lenovo's AI Push Grows with Meta, Nvidia Collaboration Outside China

<ul>
<li>Agreement covers FIFA World Cup 2026&trade; and FIFA Women&#39;s World Cup 2027&trade; and was revealed on stage at Lenovo&#39;s annual Tech World innovation event</li>
<li>Lenovo to provide FIFA technology &ndash; from AI (Artificial Intelligence) innovation to devices and data center infrastructure &ndash; to enhance fan experiences and global broadcasts</li>
<li>Lenovo and FIFA to leverage technology and innovation to grow the game globally</li>
</ul>

Reported Earlier, Lenovo Named Official FIFA Technology Partner For FIFA World Cup 2026 And FIFA Women's World Cup 2027

SentinelOne Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) shares have been in focus with the <a href="https://www.benzinga.com/general/entertainment/24/09/41014011/catastrophic-damage-from-cybersecurity-attacks-worries-62-of-business-owners-zscaler-crowds">growing cybersecurity concerns among businesses</a>.
The current estimates for the company over the next 18 months appear "too low," according to Piper Sandler.
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/590783e6290fa70001409b4a/rob-owens">Analyst </a><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/590783e6290fa70001409b4a/rob-owens">Rob Owens</a> upgraded the rating for SentinelOne from Neutral to Overweight, while raising the price target from $25 to $32.
The SentinelOne Thesis: The expectations over the next four to six quarters appears too conservative and there are three key catalysts that are likely to drive incremental NNARR (net new annual recurring revenue), Owens said in the upgrade note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
First is SentinelOne's expanded partnership with Lenovo Group Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>): This expansion of an existing reseller partnership "will see the Singularity Platform + Purple AI embedded in new commercial PC shipments, a new MDR service built on Singularity, alongside expanded reseller terms," the analyst stated.
Second is a boost to SentinelOne's performance from CrowdStrike Holdings Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) debacle: The global outage should cause CrowdStrike "some level of churn" and recent management commentary suggests that SentinelOne will "pick up its fair share of this churn — which is not properly reflected in estimates," he added.
Third is the traction with Purple AI: "We believe Purple's automation/threat hunting capabilities will help set the solution apart from other security copilots, and will be an important and underappreciated growth driver for the company going forward," Owens further wrote.
S Price Action: Shares of SentinelOne had risen by 2.84% to $26.44 at the time of publication on Monday.
Read More: • <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40606088/sentinelone-posts-q2-beat-6-analysts-cite-benefits-of-crowdstrike-customer-churn-ou">SentinelOne Posts Q2 Beat, 6 Analysts Cite Benefits Of CrowdStrike Customer Churn: &#8216;Outage Was A Net Positive&#8217;</a>
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SentinelOne Analyst's 3 Reasons Why There Is Significant Upside To Future Estimates

Lenovo Group Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>) has started making artificial intelligence servers at its Puducherry facility in India to diversify its manufacturing facilities away from Taiwan.
Lenovo has also opened a new Research and Development (R&amp;D) lab in Bengaluru, joining its global network of 18 R&amp;D labs.
The facility can produce 50,000 enterprise AI rack servers and 2,400 advanced GPU units annually, the Firstpost <a target="_blank" href="https://www.firstpost.com/tech/lenovo-isg-to-make-ai-servers-with-nvidia-amd-intel-chips-in-india-aims-to-export-60-of-outputs-13816647.html" rel="noreferrer noopener">reports</a>.
Lenovo looks to export over 60% of the servers produced at this facility to Asia-Pacific.
The AI server market was worth $38.3 billion in 2023 and, according to <a target="_blank" href="https://www.gminsights.com/industry-analysis/ai-server-market" rel="noreferrer noopener">Global Market Insights</a>, could report an 18% CAGR between 2024 and 2032, backed by the adoption of AI across various industries. In 2023, Lenovo announced a $1 billion investment between fiscal 2023 and 2025 to accelerate AI deployment.
However, a significant event had a major impact on the AI server market. Critical AI server company Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) was scrutinized after a Hindenburg report flagged <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40606308/super-micro-computer-short-report-shows-limited-evidence-of-accounting-wrongdoing-a" target="_blank" rel="noreferrer noopener">accounting malpractices, sanctions evasion</a>, and more.
The stock plunged 30% in the last 30 days as multiple <a target="_blank" href="https://www.benzinga.com/quote/SMCI/analyst-ratings" rel="noreferrer noopener">analysts downgraded the rating</a>. Earlier in 2024, KeyBanc&nbsp;analyst Thomas Blakey expected Super Micro Computer to reach a 23% share of the AI server market <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38413805/ai-server-market-is-expanding-rapidly-analysts-highlight-super-micro-computers-impo" rel="noreferrer noopener">in calendar 2024</a>.
Goldman Sachs analyst Michael Ng and JP Morgan analyst Samik Chatterjee called out Dell Technologies Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) AI server margins, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40658465/dells-ai-server-margins-and-pc-market-recovery-signal-earnings-growth-say-analysts" target="_blank" rel="noreferrer noopener">signaling the upside thereof</a>.
Photo by Robert Way via Shutterstock

Emerging Markets

Lenovo Expands AI Server Production in India, Targets Major Exports to Asia-Pacific

Multi-year deal will bring SentinelOne's Singularity Platform and Purple AI to millions of new Lenovo PCs
<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.sentinelone.com%2F&amp;esheet=54121970&amp;newsitemid=20240916836771&amp;lan=en-US&amp;anchor=SentinelOne&amp;index=1&amp;md5=40b98070c47abd74bd3a48b6f7b89a43">SentinelOne</a>&#xAE; (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) and <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lenovo.com%2Fus&amp;esheet=54121970&amp;newsitemid=20240916836771&amp;lan=en-US&amp;anchor=Lenovo&amp;index=2&amp;md5=32817731036e9084fca5d07c5934cdc2">Lenovo</a> (HKSE: 992) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>) today announced a multi-year collaboration to bring AI-powered endpoint security to millions of Lenovo devices across the globe. Lenovo will include SentinelOne's industry-leading <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.sentinelone.com%2Fplatform%2F&amp;esheet=54121970&amp;newsitemid=20240916836771&amp;lan=en-US&amp;anchor=Singularity%26%238482%3B+Platform&amp;index=3&amp;md5=86691903627fac5dc0df7e50d57a2910">Singularity&#x2122; Platform</a> and generative AI capabilities (<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.sentinelone.com%2Fplatform%2Fpurple%2F&amp;esheet=54121970&amp;newsitemid=20240916836771&amp;lan=en-US&amp;anchor=Purple+AI&amp;index=4&amp;md5=eab8d45925421a2f1965a8e4960271f7">Purple AI</a>) in new PC shipments, as well as offer upgrades to existing customers to expand its ThinkShield security portfolio and autonomously protect devices from modern attacks.

SentinelOne And Lenovo Collaborate To Protect Lenovo PCs With Embedded AI Security

Lenovo Group Q1 EPS $1.92 Up From $1.43 YoY, Revenue $15.447B Up From $12.9B YoY

<a href="https://www.usitc.gov/press_room/news_release/2024/er0808_65743.htm">https://www.usitc.gov/press_room/news_release/2024/er0808_65743.htm</a>
&nbsp;
The U.S. International Trade Commission (USITC) voted to institute an investigation of certain NAND memory devices and electronic devices containing the same. The products at issue in the investigation are described in the Commission's <a href="https://www.usitc.gov/sites/default/files/secretary/fed_reg_notices/337/337_1412_notice08082024sgl.pdf">notice of investigation</a>.
The investigation is based on a complaint filed by MimirIP LLC, of Dallas, TX, on July 8, 2024, and supplemented on July 26, 2024. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain NAND memory devices and electronic devices containing the same that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.&nbsp;
The USITC has identified the following respondents in this investigation:
<ul>
<li>Micon Technology Inc., Boise, ID&nbsp;</li>
<li>Acer Inc., New Taipei City 221, Taiwan</li>
<li>Acer America Corp., San Jose, CA&nbsp;</li>
<li>HP, Inc., Palo Alto, CA&nbsp;</li>
<li>Kingston Technology Company, Inc., Fountain Valley, CA&nbsp;</li>
<li>Lenovo Group Limited, Quarry Bay, Hong Kong&nbsp;</li>
<li>Lenovo (United States) Inc., Morrisville, NC&nbsp;</li>
</ul>
By instituting this investigation (337-TA-1412), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.&nbsp;
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

'U.S. International Trade Commission Institutes Section 337 Investigation Of Certain NAND Memory Devices And Electronic Devices Containing The Same'

Intel Capital, the venture arm of Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), is standing out as a notable foreign investor in <a target="_blank" href="https://www.benzinga.com/topic/artificial-intelligence" rel="noreferrer noopener">Chinese AI and semiconductor startups</a>.
This comes as the $147 billion chipmaker is receiving major funding from Washington to compete technologically with Beijing.
Intel's involvement in Chinese tech, particularly AI, has raised national security concerns in the U.S.
Globally, the venture arm has deployed over $20 billion since the 1990s under the leadership of Anthony Lin in San Francisco.
Intel Capital has stakes in 43 China-based tech startups. Since its formation, the venture fund has invested in over 120 Chinese companies, reported <a target="_blank" href="https://www.ft.com/content/0217cab2-c9a3-4ffa-993a-39874d6d803f" rel="noreferrer noopener">Financial Times</a>.
Earlier this year, Intel Capital participated in a $20 million fundraising for Shenzhen-based AI-Link, a 5G and cloud infrastructure firm and had led a $91 million funding round for Shanghai's micro-optics hardware producer, North Ocean Photonics, in 2022.
In June, the Biden administration announced new rules to limit <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39279319/biden-mulls-new-restrictions-on-chinas-advanced-ai-chips-access-report" rel="noreferrer noopener">U.S. financing for Chinese technology</a> with potential military applications. The rules, whose primary target is AI and quantum computing, are expected to be sealed this year.
The company has notably slowed its Chinese investments, completing only three deals since early 2023, FT report says.
Intel Capital's portfolio in China includes 16 AI startups and 15 semiconductor companies, among others, according to the report.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39746962/chip-maker-intel-aims-for-1b-in-software-revenue-by-2027" rel="noreferrer noopener">Chip Maker Intel Aims For $1B In Software Revenue By 2027</a>
With the new U.S. regulations, Intel might be compelled to divest from some investments, although exemptions for certain venture transactions are being considered.
Meanwhile, Intel secured a <a target="_blank" href="https://www.benzinga.com/general/politics/24/03/37852118/intels-chips-act-funding-could-mean-profits-for-3-congress-members" rel="noreferrer noopener">substantial $20 billion in U.S. government</a> grants and loans in March to expand its domestic semiconductor production, reflecting the significant support for the U.S. chip industry under the 2022 Chips and Science Act.
Intel's large-scale operations in China, employing around 12,000 people and contributing 27% of its global revenue in 2023, illustrate the intricate ties between the U.S. tech giant and the Chinese market.
Intel stock has lost 0.08% in the last 12 months.
Investors can access the stock via the First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) and Strive&nbsp;U.S.&nbsp;Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>).
Price Action: At the last check on Wednesday, INTC shares were trading higher by 2.76% at $35.29.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/07/39734145/intel-invests-in-israeli-ai-construction-startup-buildots-whats-on-the-cards" target="_blank" rel="noreferrer noopener">Intel Invests In Israeli AI Construction Startup Buildots &#8211; What's On The Cards?</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Fahroni via Shutterstock

General

FTXL

EA Series Trust Strive U.S. Semiconductor ETF

SHOC

Intel Capital's China Play A Concern For Washington: FT

<h4>Key Takeaways:</h4>
<ul>
<li>JinkoSolar is forming a $1 billion joint venture with two local partners in Saudia Arabia with annual capacity of 10 GW of solar cells and 10 GW of solar modules</li>
<li>The tie-up comes as Chinese solar companies expand their manufacturing globally, and as Saudi Arabia diversifies its economy beyond energy</li>
</ul>
By Doug Young
Solar panel giant&nbsp;JinkoSolar Holding Co. Ltd.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jks#NYSE">JKS</a>) has become the latest to jump on a Chinese export train that&rsquo;s increasingly passing through the Middle East with a stop in Saudi Arabia, the region&rsquo;s richest country that also has big clean energy ambitions.
The leading Chinese solar panel maker&nbsp;<a href="https://www.prnewswire.com/news-releases/jinkosolar-to-form-a-joint-venture-with-relc-and-vi-in-saudi-arabia-for-production-of-10-gw-of-high-efficiency-solar-cells-and-solar-modules-302197981.html">on Tuesday announced</a>&nbsp;its formation of a $1 billion Saudi joint venture making cutting-edge solar products with two local partners. One of those,&nbsp;Renewable Energy Localization Co., is billed as the country&rsquo;s &ldquo;national champion in the manufacturing of renewable and green energy technologies,&rdquo; and is wholly owned by Public Investment Fund, the country&rsquo;s sovereign wealth fund. The other is&nbsp;Vision Industries Co.,&nbsp;a Saudi investor focused on green energy technologies.
The tie-up ticks a number of boxes for both JinkoSolar and the Saudis and is part of a recent growing love affair between Chinese manufacturing and Saudi Arabian money.
From Jinko&rsquo;s perspective, the new plant will add to its global network of manufacturing facilities whose solar panels would steer clear of growing Western protectionism against Chinese products. For Saudi Arabia, the massive facility will help it achieve its own aims for green energy production, and also vault it into the global leagues for solar manufacturing by leveraging Jinko&rsquo;s cutting-edge N-type solar cell technology.
The announcement comes as China&rsquo;s solar sector, which supplies more than 80% of the world&rsquo;s panels, gets burned by a bloody global price war that&rsquo;s the direct result of overcapacity built up in China over the last decade. Both the U.S. and EU have called on China to scale back or end the strong government support behind the buildup, which they say distorts global markets and puts their own manufacturers at a disadvantage.
The U.S. has gone one step further by raising tariffs on imported Chinese solar cells to 50% from the previous 25% starting next month. The EU has yet to take any similar action, though it recently launched anti-dumping tariffs against Chinese electric vehicles (EVs) for similar reasons.&nbsp;
JinkoSolar&rsquo;s new joint venture announcement breathed some much-needed life into its embattled U.S.-traded stock. The shares rose 7.3% in Tuesday trade, though they remain near a four-year low on concerns about the price war and protective tariffs. Analysts are also quite bearish on the company &ndash; a rarity for firms from this kind of high-growth emerging sector. None of the four polled by Yahoo Finance recommend the stock, with one rating it a &ldquo;hold,&rdquo; while two rate it &ldquo;underperform&rdquo; and one calls it a &ldquo;sell.&rdquo;
That kind of bearishness is reflected in JinkoSolar&rsquo;s price-to-earnings (P/E) ratio that stands at just 3.3 &ndash; the kind of multiple you&rsquo;d expect from an old industry category like textiles or steel with low margins and limited growth potential. That ratio is at the bottom of the solar heap, trailing the 5.8 for&nbsp;Canadian Solar&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/csiq#NASDAQ">CSIQ</a>) and well behind multiples of 23 for both China&rsquo;s&nbsp;Longi Green Energy(601012.SH) and U.S.-based&nbsp;First Solar&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fslr#NASDAQ">FSLR</a>).
<h3>Major New Capacity</h3>
The new Saudi plant looks quite large, based on its $1 billion investment and planned annual capacity for 10 GW of solar cells and another 10 GW of solar modules. That would substantially boost JinkoSolar&rsquo;s current capacity that stood at about 70 GW at the end of last year for N-type cells, considered the industry&rsquo;s most advanced and the new joint venture&rsquo;s main focus.
&ldquo;This partnership is another major milestone in the execution of our globalization strategy, and will further help us optimize our global manufacturing and marketing infrastructure, as well as enhance our global competitiveness,&rdquo; said JinkoSolar Chairman Li Xiande.
The Saudi plant will complement JinkoSolar&rsquo;s other overseas manufacturing facilities in the U.S., Malaysia and Vietnam, and is part of a broader trend by Chinese solar companies to do more manufacturing offshore. Jinko is the first major company to come to Saudi Arabia, though Longi, which has plants in Vietnam and Malaysia, has said it could consider building facilities in the Middle Eastern nation as well as the U.S. Rival&nbsp;Trina Solar&nbsp;(688599.SH) has plants in Thailand and Vietnam, while&nbsp;JA Solar&nbsp;(002459.SZ) manufactures in Malaysia.
While Southeast Asia has become popular among Chinese manufacturers in general, Saudi Arabia&rsquo;s nascent rise is much more recent. That owes in no small part to the country&rsquo;s use of its huge cash reserves to diversify its economy beyond oil and gas into emerging industries like new energy and gaming. Chinese PC giant&nbsp;Lenovo&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/lnvgy#OTC">LNVGY</a>) announced&nbsp;<a href="https://thebambooworks.com/lenovo-makes-critical-calculation-with-middle-east-pivot/">a similar tie-up</a>&nbsp;in May to build a major manufacturing facility in Saudi Arabia in partnership with Alat, another entity managed under Public Investment Fund.
While the latest news brought some much-needed relief to JinkoSolar&rsquo;s shares, it&rsquo;s hard to see investors getting too excited about the company anytime soon, at least based on its financials. Its revenue rose 43% last year to 119 billion yuan ($16.4 billion) on booming global demand and a near doubling in its annual shipments. That growth is expected to grind to a halt this year due to the overcapacity and price wars we&rsquo;ve previously mentioned, with analysts expecting revenue to actually fall slightly from last year&rsquo;s levels.
The company&rsquo;s margin and profit trends don&rsquo;t look too encouraging either, again, due to the price wars. JinkoSolar reported a gross margin of 11.9% in this year&rsquo;s first quarter, down more than 5 percentage points from 17.3% in the year-ago period. The company&rsquo;s first-quarter profit also sank to 609 million yuan from 789 million yuan a year earlier, and analysts expect its annual profit this year to fall by more than half from 2023.
At the end of the day, this new joint venture is a small bright spot for JinkoSolar, though it won&rsquo;t make any meaningful contribution to its business for at least a year until new production begins. The company&rsquo;s ultra-low valuation could also provide some incentive for investors who think its shares are oversold. But from a business perspective, we&rsquo;ll probably need to wait at least another year or more before the company has a more positive story to tell.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Small Cap

CSIQ

FSLR

JinkoSolar Finds Rare Bright Spot In New Saudi Tie-Up

Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) had a 20.8% increase in personal computer shipments for the second quarter, marking the largest growth among global PC manufacturers.
What Happened: The PC industry, <a href="https://in.benzinga.com/content/31737169/apple-emerges-as-biggest-loser-with-mac-as-global-pc-sales-slump-30-in-q1">which faced&nbsp;historic declines</a>, is showing signs of recovery with two consecutive quarters of growth. 
According to the latest report by IDC that was made public on Tuesday, the worldwide&nbsp;shipments of desktops and laptops&nbsp;saw a 3% rise from the same period last year. Apple and Acer Inc. experienced the most substantial&nbsp;shipment growth among major&nbsp;manufacturers, with the latter posting a 14% increase.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Despite the overall growth, Dell Technologies Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) shipments decreased by&nbsp;2.4% in the quarter, making it the only major company&nbsp;to see a decline. 
Lenovo Group Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>) held&nbsp;the highest market share at&nbsp;nearly 23%, while HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) saw a 1.8% increase from a year earlier, securing its position as the second-largest&nbsp;PC maker with 21% of&nbsp;the market.
Excluding China, where demand was weak, worldwide shipments grew by more than 5%, according to IDC.
<figure class="wp-block-image size-large"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09231915/Screenshot-2024-07-10-at-8.49.05%E2%80%AFAM-1024x389.png" alt="" class="wp-image-427620" /><figcaption class="wp-element-caption">Source: IDC </figcaption></figure>
Why It Matters: This surge in Apple&#8217;s PC shipments is particularly noteworthy given the company&#8217;s recent struggles. Last year, Apple was hit hardest by a global PC shipment decline of 29% in Q1 2023, with its MacBook shipments falling by 40.5%. 
The PC industry has faced significant declines after consumers, businesses, and schools purchased new machines during the pandemic in 2020 and 2021, and then delayed replacements.
In January this year,&nbsp;Intel CFO&nbsp;David Zinsner&nbsp;in a post-earnings conference call said that the company is<a href="https://www.benzinga.com/markets/equities/24/01/36799805/intel-is-banking-on-the-year-of-ai-pc-and-record-notebook-shipments-as-its-consumer-chips-stage-"> banking on the rise of AI to drive consumers</a> to purchase new PCs in the future. The &#8220;age of AI PC further enhances the value of device refresh,&#8221; he stated at the time.
His sentiments were echoed by the analyst firm Counterpoint Research, which noted that the <a href="https://bztechtrends.beehiiv.com/p/will-new-ipads-reignite-tablet-market">global PC industry</a> is showing &#8220;early signs of recovery.&#8221;
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:&nbsp;
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<li><a href="https://www.benzinga.com/news/24/07/39659526/elon-musk-admits-private-messages-on-x-are-not-encrypted-by-default-after-accusing-metas-whatsapp-of?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Admits Private Messages On X Are Not Encrypted By Default After Accusing Meta&#8217;s WhatsApp Of Being &#8216;Spyware,&#8217; Blames It On &#8216;Clunky&#8217; Implementation</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Apple Registers Largest Growth Among Global PC Makers, Shipments Surge 20.8% — Report

<h4>Key Takeaways:</h4>
<ul>
<li>Saudi Arabia&rsquo;s Alat subscribed to $2 billion worth convertible bonds from Lenovo, which the PC giant will use to help strengthen its financial position</li>
<li>Lenovo is stepping up its development efforts in the Middle East and Africa to reduce its exposure to the U.S.&nbsp;</li>
</ul>
By Lau Chi Hang
Hong Kong is a favorite destination for Saudi princes, who have traditionally descended on the Asian city as a relatively safe financial haven for opening family trusts. But a major new tie-up between Hong Kong-listed PC giant&nbsp;Lenovo Group Ltd.&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/lnvgf#OTC">LNVGF</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/lnvgy#OTC">LNVGY</a>) and a unit of Saudi Arabia&rsquo;s sovereign wealth fund breaks that mold, and instead looks more like a joining-of-giants with their own bigger agendas.
Foreign investors have been scaling back or leaving China outright these last few years as tensions mount between Beijing and Washington. Data from the Institute of International Finance shows foreigners withdrew a total of $82.2 billion from Chinese equity markets in 2023 alone. But that Western flight has been partly offset by rising inflows of Middle Eastern money, bringing with it some new life and vitality for China&rsquo;s financial markets and companies.
In the latest inflow from that tide, Lenovo recently&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0529/2024052900029.pdf">announced</a>&nbsp;a major new strategic cooperation agreement with Alat, an entity managed under Saudi Arabia&rsquo;s Public Investment Fund. With a mouth-watering $100 billion in funds to invest, Alat has been tasked with transforming Saudi Arabia into a global hub for electronics and other advanced industries.&nbsp;
Under their agreement, Lenovo will set up a regional headquarters for the Middle East and Africa in the Saudi capital of Riyadh, consisting of region-facing client and research centers. At the same time, the company plans to build a PC and server manufacturing base in the country to expand its global footprint. Alat will assist Levono to ensure the strategic tie-up&rsquo;s smooth implementation.
Alat also purchased $2 billion worth of Lenovo three-year zero coupon convertible bonds. Those can be exchanged later for about 1.5 billion Lenovo shares at a conversion price of HK$10.42 per share, which would equal about 10.8% of Lenovo&rsquo;s enlarged share capital if Alat makes the conversion. The conversion price represented a 10% premium to Lenovo&rsquo;s average share price in the 30 days before the announcement.
Separately, Lenovo&rsquo;s board&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0529/2024052900033.pdf">also approved</a>&nbsp;another major new fundraising with the issue of 1.15 billion three-year warrants at an issue price of HK$1.43, which could raise up to HK$1.64 billion ($210 million). The exercise price of the warrants is HK$12.31 per share, representing a 5.9% premium to the closing price on the day before the announcement.
<h3>Muted Market Reaction</h3>
&ldquo;Through this strong strategic partnership, Lenovo Group will have more resources and greater financial flexibility to further accelerate its transformation and expand its business to capture the tremendous growth opportunities in the Middle East and Africa region,&rdquo; Chairman and CEO Yang Yuanqing said in a statement with the Saudia Arabia announcement.&nbsp;
Lenovo shares rallied sharply just before the announcement, suggesting rumors of the tie-up were already in the market. That may at least partly explain the muted reception by investors the day of the actual news, when Lenovo&rsquo;s shares fell by nearly 1% to close at HK$11.52. More broadly, Lenovo&rsquo;s shares have performed quite well so far this year, rising from a low of HK$7.80 in February to their latest close of HK$10.64 last Friday, representing a gain of 36%.
The company&rsquo;s latest quarterly report for the three months to March shows its revenue and profit increased by 9% and 118% year-on-year, respectively, though they fell by 12% and 26% quarter-on-quarter, and were also down 4% and 0.4% from the quarter before that. Most investment banks currently have price targets for the company between HK$12 and HK$14, which is close to the current price. Any potential for price target upgrades will depend on the company&rsquo;s business trends over the next two quarters, which will present a clearer picture of where it&rsquo;s heading in a global PC market with limited growth potential.
<h3>Killing Many Birds With One Stone&nbsp;</h3>
Against that backdrop of limited potential, the Alat partnership could provide some new excitement for Lenovo shareholders by plotting out a future path for stronger growth and a hedge against risk.&nbsp;
One of the biggest risks for Lenovo is rising tensions between China and the West, reflected by recent voices in the U.S. arguing for a ban on the use of Lenovo PCs in government offices. That threat has yet to result in any definitive actions, though uncertainties continue to persist. At a time when China is facing growing sanctions and restrictions from European and U.S. governments in sectors as varied as semiconductors, solar panels, pharmaceuticals and electric vehicles, the possibility of Lenovo becoming the next target can&rsquo;t be ruled out.&nbsp;
With that in mind, Lenovo&rsquo;s Middle Eastern expansion with the setting up of a major new regional base will help to reduce its geopolitical risk. Its products made locally in the region and exported to the West will be less likely to get scrutinized by U.S. and European governments, which have becoming increasingly sensitive to the country of origin for products sold by Chinese companies.
The Americas is currently Lenovo&rsquo;s biggest market by revenue, accounting for 34% of the total in its latest fiscal year. Europe, the Middle East and Africa accounted for 28% last year, though Lenovo did not break out data for just the Middle East and Africa.&nbsp;
We should note that the Middle East has been trying to develop its science and technology sectors in recent years in a bid to diversify beyond its reliance on oil. At the same time, African economies have also been advancing, making this broader region a promising market. A report by the Economist Intelligence Unit projected Africa&rsquo;s growth rate would rise from 2.6% in 2023 to 3.2% in 2024, making it the world&rsquo;s second fastest-growing region. Thus, Lenovo&rsquo;s new partnership with Saudi Arabia could position it well to benefit from the region&rsquo;s future development.
Strategic cooperation aside, the partnership will also provide Lenovo with a $2 billion cash infusion to replenish its coffers. The company said it will use the funds to pay off existing debt, and to support its other general business activities. According to its latest annual financial report, the company will have nearly $3.6 billion worth of bonds coming due this fiscal year, which its cash on hand can comfortably cover. But funds from the new convertible bond issue could also provide additional funding for its future expansion and R&amp;D efforts, in addition to their use for debt servicing.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Penny Stocks

Lenovo Makes Critical Calculation With Middle East Pivot

Cisco Systems (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/csco#NASDAQ">CSCO</a>) is expanding its footprint into the realm of integrated infrastructure and networking solutions through its recent collaboration with Lenovo Group (OTC: <a class="ticker" href="https://www.benzinga.com/stock/lnvgy#OTC">LNVGY</a>) to accelerate digital transformation for businesses worldwide. 
The partnership between Cisco and Lenovo aims to deliver fully-integrated solutions designed to streamline and expedite the digital transformation journey for organizations of all sizes. 
By combining Lenovo&#39;s edge-to-cloud portfolio with the Cisco Nexus networking ecosystem, the collaboration aims to provide customers with best-in-class network performance, enhanced security and unparalleled scalability. 
With a focus on accelerating time-to-innovation, simplifying management, and ensuring vendor simplicity, this partnership is poised to empower businesses with turnkey solutions that optimize operational excellence, AI/ML networking, sustainability and advanced automation analytics practices.
<div class="chart_embed">
<h3>Cisco Systems, Inc. Price and Consensus</h3>
<a href="https://www.zacks.com/stock/chart/CSCO/price-consensus-chart?icid=chart-CSCO-price-consensus-chart"><img alt="Cisco Systems, Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/2a/1717424694.png" style="height:285px; width:620px" title="" /> </a>
Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote
</div>
<h3>Expanding Clientele Boosts Portfolio</h3>
The latest move bodes well with Cisco&#39;s commitment to driving digital transformation through its latest partnership and integrated infrastructure solutions for enhanced business outcomes. 
Expanding clientele has been noteworthy. In addition to Lenovo, Cisco also collaborated with AT&amp;T (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) and Ford Motor (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>) to enhance its portfolio further. 
Cisco recently collaborated with AT&amp;T to introduce a seamless digital buying experience for businesses, offering 5G Fixed Wireless Access through the Meraki MG52 and MG52E gateways, simplifying deployment and management while ensuring scalable, resilient and secure connectivity nationwide. 
The company also collaborated with Ford Motor Company in March to announce the integration of the Webex app into select Ford and Lincon vehicles, providing immersive meeting experiences and seamless connectivity for remote work on the go. 
Acquisitions have played a significant role in shaping the company&#39;s growth trajectory. In April, it announced the completion of its acquisition of Isovalent, enhancing its position in cloud-native networking and security. 
In March, Cisco announced the completion of its acquisition of Splunk, aiming to deliver full visibility and insights across enterprises&#39; digital footprints, enhancing security, observability, networking and enabling AI adoption. 
Adding Splunk and Isovalent will help expand its footprint in the cybersecurity domain and accelerate its strategy of securely connecting everything.
<h3>Cisco&#39;s Q4 Forecast Cloudy</h3>
Despite Cisco&#39;s robust portfolio and expanding clientele its top-line growth was adversely impacted by the increasing macroeconomic uncertainty and weakness in networking revenues. In third-quarter fiscal 2024, networking revenues declined 27% year over year to $6.52 billion. 
The stock has declined 8% against the Zacks Computer &amp; Technology sector&#39;s growth of 15.3% year to date. 
This Zacks Rank #3 (Hold) company&#39;s fourth-quarter fiscal 2024 revenues are expected to be between $13.4 billion and $13.6 billion. The Zacks Consensus Estimate for revenues is pegged at $13.52 billion, indicating an 11.1% decline from the year-ago quarter&#39;s levels.
Non-GAAP earnings per share are anticipated to be between 84 cents and 86 cents. The Zacks Consensus Estimate is currently pegged at 86 cents, which remained unchanged in the past 30 days.
<a href="https://www.zacks.com/stock/news/2282922/cisco-csco-aids-digital-transformation-with-lenovo-tie-up?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2282922">To read this article on Zacks.com click here.</a>

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Cisco Aids Digital Transformation With Lenovo Tie-Up

Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) boasts that its new chips will allow customers to operate their laptops extensively without concerns about battery life.
San Diego-based Qualcomm is supplying the semiconductors for Microsoft Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) latest <a href="https://www.benzinga.com/news/24/05/38931937/microsoft-touts-ai-capable-surface-notebooks-58-faster-than-m3-macbook-air-we-have-essentially-the-b">Copilot+ PCs, which incorporate advanced AI features. </a>
Both companies highlighted the importance of Qualcomm's hardware in enabling these AI enhancements while maintaining long battery life, reported Bloomberg.
Qualcomm CEO Cristiano Amon remarked at the Computex trade show that the collaboration is groundbreaking. He compared it to the significance of Windows 95.
Amon emphasized that Windows laptops powered by Qualcomm's Snapdragon X Elite systems will boast up to twice the battery life of traditional models and will be over 100 times more power-efficient in running certain AI features.
Qualcomm, along with its industry peers, has been working for more than a decade to reduce the PC sector's reliance on Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) by introducing key components based on Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) technology, which is predominant in smartphones.
Also Read: <a href="https://www.benzinga.com/top-stories/24/05/39095275/exclusive-on-device-ai-revolution-is-fundamental-says-qualcomm-cfo">&#8216;On-Device AI Revolution Is Fundamental,&#8217; Says Qualcomm CFO</a>
The strategy aims to diversify Qualcomm's revenue sources beyond its dominant position in mobile chips.
Amon is optimistic that the enhanced efficiency and connectivity of Qualcomm's products will help the company gain market share in new areas such as automotive and computing. 
Last month, Microsoft unveiled its AI-enhanced Copilot+ computers, which claim superior performance compared to Apple Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) top MacBook Air.
Microsoft's Surface line, along with products from partners like Lenovo Group Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>), Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>), and Asustek Computer Inc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ASUUY#OTC">ASUUY</a>) will feature Qualcomm-powered Copilot+ laptops. 
Despite the promising AI-driven innovations, Qualcomm faces the challenge of breaking Intel's longstanding dominance in the PC market. 
Qualcomm stock has gained 81% in the last 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) and VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Price Action: QCOM shares are trading higher by 1.64% at $207.47 in premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="http://Arm Holdings Gears Up for AI Foray with New Chip Division Launching Next Year">Arm Holdings Gears Up for AI Foray with New Chip Division Launching Next Year</a>
Image: Shutterstock

ASUUY

MSFT

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Lenovo Group

애플(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)은 2분기에 개인용 컴퓨터 출하량이 20.8% 증가하여 글로벌 PC 제조업체 중 가장 큰 성장을 기록했다.
어떤 일이 (What Happened): <a href="https://in.benzinga.com/content/31737169/apple-emerges-as-biggest-loser-with-mac-as-global-pc-sales-slump-30-in-q1">역사적 불황을 겪었던</a> PC 산업이 2분기 연속 성장세를 보이며 회복 조짐을 보이고 있다.
화요일에 공개된 IDC의 최신 보고서에 따르면 전 세계 데스크톱 및 노트북 출하량이 작년 같은 기간보다 3% 증가했다. 애플과 에이서(Acer Inc.)는 주요 제조업체들 중 가장 큰 출하량 증가를 경험했으며, 후자는 14% 증가를 기록했다.
전반적인 성장에도 불구하고 델 테크놀로지스(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>)의 이번 분기 출하량은 2.4% 감소하여 감소세를 보인 유일한 주요 기업이 되었다.
레노버 그룹(OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGY#OTC">LNVGY</a>)은 약 23%로 가장 높은 시장 점유율을 차지했으며, HP 인코포레이티드(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>)는 전년 대비 1.8% 증가하여 21%의 시장 점유율로 두 번째로 큰 PC 제조업체로서의 위치를 ​​확고히 했다.
IDC에 따르면 수요가 약한 중국을 제외하면 전 세계 출하량은 5% 이상 증가했다.
<figure class="wp-block-image size-large"><img decoding="async" class="wp-image-427620" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/09231915/Screenshot-2024-07-10-at-8.49.05%E2%80%AFAM-1024x389.png" alt="" /><figcaption class="wp-element-caption">출처: IDC</figcaption></figure>
왜 이게 중요한가 (Why It Matters): 애플의 PC 출하량 급증은 회사의 최근 어려움을 고려할 때 특히 주목할 만 하다. 지난해 애플은 2023년 1분기 전 세계 PC 출하량이 29% 감소하고 맥북(MacBook) 출하량이 40.5% 감소하면서 가장 큰 타격을 받았다.
PC 산업은 2020년과 2021년 팬데믹 기간 동안 소비자들, 기업들, 학교들이 새 기기를 구입한 후 교체가 지연되면서 상당한 쇠퇴에 직면했다.
올해 1월 인텔의 CFO인 데이빗 진스너(David Zinsner)는 실적 발표 후 전화 회의에서 회사가 미래에 소비자가 새 PC를 구매하도록 유도하기 위해 <a href="https://www.benzinga.com/markets/equities/24/01/36799805/intel-is-banking-on-the-year-of-ai-pc-and-record-notebook-shipments-as-its-consumer-chips-stage-" target="_blank" rel="noopener" data-google-interstitial="false">AI의 부상에 투자</a>하고 있다고 말했다. 그는 당시 "AI PC 시대는 디바이스 리프레시(Device Refresh)의 가치를 더욱 높여준다"고 말했다.
분석 회사인 카운터포인트 리서치(Counterpoint Research)는 <a href="https://bztechtrends.beehiiv.com/p/will-new-ipads-reignite-tablet-market" target="_blank" rel="noopener">전 세계 PC 산업</a>이 &#8216;회복의 초기 조짐&#8217;을 보이고 있다고 지적한 그의 의견에 동조했다.
다음 내용: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39659526/elon-musk-admits-private-messages-on-x-are-not-encrypted-by-default-after-accusing-metas-whatsapp-of?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">일론 머스크는 메타의 왓츠앱이 &#8216;스파이웨어&#8217;라고 비난한 후 X의 개인 메시지가 기본적으로 암호화되지 않음을 인정하고 &#8216;투박한&#8217; 구현을 비난</a></li>
</ul>
면책 조항: 본 콘텐츠의 일부는 Benzinga Neuro의 도움을 받아 제작되었으며 Benzinga 에디터들이 검토하고 배포했습니다.
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