The Zhitong Finance App learned that Lenovo Group (00992) fell more than% during the intraday period. As of press release, it was down 6.73% to HK$22.18, with a turnover of HK$1,921 billion.
According to the news, Google's parent company Alphabet's revenue and profit for the third quarter fell short of expectations, and even though capital expenditure was “controlled,” free cash flow was still negative 9.1 billion US dollars, recording negative values for the second consecutive quarter. The market's doubts about whether huge AI capital investments can be converted into real returns have heated up, causing AI hardware to generally suffer. Notably, the scale of Lenovo Group's short selling continues to expand. According to the data, the number of shares sold rose from 27.178 million shares on October 22 to 355.64 million shares on October 28, an increase of 30.86%, and the short selling amount increased from HK$643 million to HK$844 million.
According to the Orient Securities Research Report, Lenovo is benefiting from AI infrastructure at home and abroad. Some investors have limited understanding of Lenovo's server-related business. We have seen that the company has in-depth cooperation with Nvidia and others overseas, and also has technical advantages domestically. In addition, some investors are concerned that declining shipments in PC and other markets will put pressure on Lenovo's performance. The bank believes that the company is expected to resist the impact of declining sales through higher average sales prices, a larger share of high-end products, and a better AIPC product portfolio and procurement scale.