BANGALORE/BEIJING, Aug 13 (Reuters) - China's Lenovo Group ( LNVGF ) reported a 43% jump in quarterly revenue on Thursday, beating forecasts and sending shares of the world's largest computer maker surging, as it rides an AI hardware boom and reaps the benefits of a global memory chip shortage.

Lenovo's ( LNVGF ) revenue rose to $26.94 billion in the three months ended June 30, beating analyst expectations of $22.3 billion, as the consumer electronics hardware giant benefited from artificial intelligence-driven demand and solid PC sales.

It was the group's highest quarterly revenue growth in the last five years, as AI-related revenue grew 60% year-on-year to $9.3 billion, accounting for 35% of total revenue in its fiscal first quarter.

The company swung to a net loss attributable to shareholders of $609 million from a profit of $505 million last year, compared to the average analyst estimate of $589 million profit, according to data compiled by LSEG. The company said the loss was primarily due to a non-cash fair value loss of US$1.7 billion arising from the revaluation of warrants issued in 2025. 

Lenovo's ( LNVGF ) shares hit an all-time high on Thursday before the results announcement, bringing its year-to-date gains to 225%. The shares surged as much as 17% after the results announcement. Its U.S. competitors Dell, Hewlett Packard and Super Micro have been some of Wall Street's best performers this year but have raised prices by 10% to 30% due to soaring NAND and DRAM memory chip costs.

Lenovo's ( LNVGF ) PC, tablet and smartphone division, which accounted for about 64% of total revenue, reported a 27% year-on-year increase in revenue during the period.

Adjusted net income, which excludes one-off items and non-cash charges, more than doubled to $1.075 billion. R&D expenses jumped 30% year-on-year, the company said.

Global PC shipments declined by 2% year-on-year in the second quarter of 2026 to 16.6 million units for the first time since Q1 2025 due to memory-driven cost pressures, according to Counterpoint Research.

Lenovo ( LNVGF ) retained its market lead in the second quarter, giving it a market share of 25.6%.

Its AI server pipeline reached $54.0 billion, up 157% quarter-over-quarter, reflecting demand from hyperscalers, AI cloud and enterprise AI clients, its earnings report said.

Lenovo's ( LNVGF ) strong performance ⁠comes after the company warned earlier this year of pressure on PC shipments as the industry grapples with ​a memory chip shortage that is getting more severe. It has also raised PC prices to mitigate ​the impact of soaring memory costs.