Lenovo Sees US-China Tariff Pause as Boost Amid Strong AI Growth
- tech360.tv
- Aug 15, 2025
- 2 min read
Chinese PC maker Lenovo said the 90-day extension of the US-China tariff pause is a positive development, as the company reported strong growth in artificial intelligence infrastructure despite ongoing tech tensions.
Chief Executive Officer Yang Yuanqing said the truce brings more certainty to the business environment. He made the remarks after Lenovo released its fiscal first-quarter results on Thursday.
The United States and China extended their tariff pause to November, avoiding triple-digit duties on each other’s goods and offering temporary relief to businesses.
Lenovo’s revenue for the quarter ended June 30 rose 22% year-on-year to USD 18.8 billion, surpassing analysts’ expectations of USD 17.4 billion, according to LSEG data.
Yang attributed the growth to strong AI demand across Lenovo’s three major business segments, each of which recorded double-digit growth.
Net profit attributable to shareholders more than doubled to USD 505 million, exceeding the consensus estimate of USD 307.7 million.
AI PCs made up more than 30% of Lenovo’s total PC shipments in the first quarter. The company’s AI server business grew 150% during the same period, driven by strong local demand.
Yang said the United States accounts for less than 20% of Lenovo’s total revenue. He noted that existing tariffs, including a 30% levy on Chinese PC exports to the US, have had limited impact due to Lenovo’s global manufacturing footprint.
China recently advised major internet firms to be cautious when purchasing Nvidia H20 chips and to consider domestic alternatives. This follows the US approval of resumed H20 chip sales to China.
Yang said China’s AI infrastructure is growing faster than the rest of the world. Lenovo, a Nvidia partner in China, has invested in diversifying its supply chain to meet customer needs amid the semiconductor dispute.
Lenovo shares fell more than 3% in early trading on Thursday, while the Hang Seng Index rose 0.4%. Over the past three months, Lenovo’s stock has gained 15%, outperforming the benchmark index.
Lenovo sees US-China tariff pause as a positive sign for business stability
Q1 revenue rose 22% to USD 18.8 billion, beating expectations
Net profit more than doubled to USD 505 million
Source: REUTERS
