LENOVO GROUP (00992.HK) opened 2.85% higher today and once surged 8.6% to a record high of HKD27.42. It last quoted at HKD26.04, up 3.17%, with turnover of 136 million shares, involving HKD3.617 billion.

Macquarie said in a research report that LENOVO GROUP's recent results confirmed a structural inflection point, with its ISG returning to profit amid accelerating demand for AI and traditional servers. The broker believed AI server demand will continue to outpace supply, supporting strong ISG revenue growth and margin expansion.

Meanwhile, tight memory supply has become a tailwind, helping improve server pricing, market share gains and operating leverage. The broker viewed the recent share price rally as the beginning of a valuation re-rating cycle.

Macquarie noted that LENOVO GROUP's AI server pipeline has increased to USD21 billion (as of the end of FY2026 in March), providing strong earnings visibility.

Although its market share in the high-end enterprise infrastructure segment remains relatively small, the company should be able to start gaining share in the high-end market, as deliveries of NVIDIA Corporation (NVDA.US) GB300 began last quarter, and timely deliveries of NVIDIA Vera Rubin servers are expected in 2H26.

The broker largely lifted its TP by 72% from HKD21.75 to HKD37.4. It reiterated its Outperform rating and named the stock as a Marquee Buy idea.
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