Goldman Sachs noted in a report that LENOVO GROUP (00992.HK) +0.980 (+8.861%) Short selling $250.84M; Ratio 16.233% 's next-generation Artificial Intelligence PC (AI PC) featuring Qualcomm X Elite processors will be available in June. As highlighted in other reports from the broker, X Elite included a 45 TOPS network processing unit (NPU) with a total computing power of up to 75 TOPS, allowing Copilot to run on the AI PC. The stronger computing power also improved the efficiency of text-to-image generation from 22 seconds to 7 seconds.
In addition to Qualcomm processors, Lunar Lake by Intel (INTC.US) and Strix Point by Advanced Micro Devices (AMD.US) are both scheduled to launch by the end of 2024, supporting the growth of AI PCs in 2025.
AI PCs bring better ASPs and gross margins for brands, with the two new models powered by X Elite priced at US$1,199 and US$1,699 respectively, 34% and 90% higher than LENOVO's ASPs for PCs in 2023. The broker expected AI PCs to contribute 25% and 35% to the group's revenue in FY24 and FY25 respectively.
The broker lifted LENOVO's target price to HK$13.98 and maintained its Buy rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-27 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
