Lenovo shares rocketed 109% in May 2025, marking the company's best monthly performance in 27 years. The surge came as investors piled into the stock after AI server revenue hit 38% of Lenovo's quarterly sales. Goldman Sachs more than doubled its price target for the world's largest PC maker, betting that the pivot to artificial intelligence infrastructure will keep paying off.
Why AI servers are driving the rally
Lenovo has long been known for ThinkPads and desktop computers, but its server business is now the headline act. In the most recent quarter, AI servers — machines built to run training and inference workloads — accounted for more than a third of all revenue. That shift has reshaped how analysts view the company. Investors who once saw Lenovo as a cyclical hardware vendor now treat it as a direct play on the AI buildout, alongside names like Nvidia and Super Micro Computer.
The 109% jump in May wiped out years of stagnation. Lenovo's stock had rarely seen double-digit monthly gains in the past decade, let alone a triple-digit one. The last time the stock moved this much in a single month was during the dot-com boom of the late 1990s, when Lenovo was still a smaller player in the Chinese PC market.
Goldman Sachs doubles its price target
Goldman Sachs analysts raised their price target for Lenovo to a level more than double the previous estimate, according to the firm's published research. The upgrade reflected higher expectations for AI server margins and accelerating demand from cloud providers and enterprise customers. Goldman did not issue a new rating change — it had already rated the stock a buy — but the magnitude of the target increase caught the market's attention.
Other brokerages have also lifted their targets in recent weeks, though none as aggressively as Goldman. The consensus view among analysts covering Lenovo now leans heavily bullish, with most citing the AI server pipeline and Lenovo's manufacturing scale as key advantages over smaller rivals.
PC business still the foundation
Despite the AI hype, Lenovo remains the world's largest personal computer maker by shipment volume, a position it has held for years. The PC division still generates the bulk of the company's revenue, though its profit margins are thinner than those of the server unit. The AI server business, while growing fast, is still a fraction of the overall revenue mix. The 38% share is a quarterly snapshot, not necessarily a permanent shift.
Lenovo's challenge will be to sustain the AI server momentum without neglecting its core PC market, which faces its own cyclical pressures. The company has signaled it plans to invest more in data-center capacity and supply chain flexibility, but it has not disclosed specific targets for AI server revenue beyond the current quarter.
Lenovo is expected to report its next earnings in early August. The results will show whether the AI server surge is a one-quarter blip or a lasting trend — and whether the stock can hold onto its May gains.
