Chinese PC maker Lenovo says US-China tariff pause a positive sign
China
's
Lenovo
said on Thursday the tariff pause between Washington and Beijing was positive and growth in China's
AI infrastructure
remained strong despite U.S.-China tech tensions.
"The truce is a positive situation," said Lenovo's CEO
Yang Yuanqing
in an interview with Reuters after the world's largest maker of personal computers released its fiscal first-quarter results.
"We feel better than the previous quarter - it brings us more certainty rather than uncertainty."
The U.S. and China have extended a tariff pause for another 90 days to November, averting triple-digit duties on each other's goods and offering temporary relief to businesses on both sides.
Lenovo's overall revenue for the three months ended June 30 climbed 22 per cent year-on-year to $18.8 billion, exceeding analysts' expectations of $17.4 billion, according to LSEG data.
Yang attributed the performance to strong AI demand in its three major business segments, each scoring double-digit growth in the first quarter.
Chinese exports to the U.S., including PCs, currently face a 30 per cent levy, despite the tariff truce. Yang said the U.S. accounted for less than 20% of Lenovo's total revenue, and that the tariffs on Chinese goods had not had much impact on its business so far due to its
global manufacturing footprint
.
Net profit
attributable to shareholders more than doubled year-on-year to $505 million, well above the consensus estimate of $307.7 million.
AI PC accounted for more than 30 per cent of all Lenovo PC shipments in the first quarter, according to Yang. Lenovo's AI server business grew 150 per cent in the first quarter on strong local demand.
"We see strong pipeline in AI servers," Yang said.
China has recently advised major internet firms to exercise caution when purchasing
Nvidia
H20 chips and to consider domestic alternatives, after Trump approved the
resumption of H20 chip sales to China.
Yang said China AI infrastructure had grown faster than the rest of the world and Lenovo, a Nvidia partner in China, has invested to diversify its supply-chain options amid the US-China dispute over semiconductors.
"Not only can we sell global products, we have invested a lot to develop the best local component products to meet customers' different requirements," Yang said.
Lenovo's shares fell more than 3 per cent in early trading on Thursday, against a 0.4% rise in the Hang Seng Index. However, the stock has climbed 15 per cent over the past three months, outpacing gains in the benchmark.
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