Even Lenovo is getting concerned about global chip shortages - CEO says world's largest manufacturer will 'expect PC unit sales to face pressure'

• Lenovo expects PC unit sales to face pressure from memory shortages
• RAM shortages are creating operational strain across Lenovo’s hardware divisions
• AI server business showed high double-digit growth from Nvidia-based deployments

Lenovo has signaled growing concern over tightening memory supply, even as it reported solid revenue growth in its most recent financial quarter.

The world’s largest PC manufacturer delivered stronger-than-expected top-line results, but warned hardware shipments could slow down as component constraints intensify across the industry.

Chief Executive Yang Yuanqing said the company has raised prices to offset rising memory costs, telling Reuters, “We expect PC unit sales to face pressure, but believe we can still grow revenue and maintain profitability.”

Financial performance grows despite rising operational pressures

Lenovo’s third-quarter revenue rose 18% year over year to $22.2 billion, exceeding market expectations, as adjusted net profit, which excludes one-time items and non-cash charges, climbed 36% to $589 million.

However, reported net profit declined 21% to $546 million, largely due to a $285 million restructuring charge tied to internal changes, which the company said will reduce costs by up to $200 million over three years.

Despite headline growth, the company acknowledged that RAM shortages are creating operational strain.

Yang's remarks reflect mounting tension between strong demand and limited component availability.

Lenovo’s core PC, tablet, and smartphone division, which generates roughly 70% of total revenue, recorded a 14.3% increase in sales during the period.

This growth comes as the broader PC market faces supply constraints linked to memory chips increasingly allocated to artificial intelligence systems.

Industry observers have pointed to AI infrastructure demand as a key factor reshaping semiconductor allocation patterns.

At the same time, Lenovo is accelerating expansion in servers designed for artificial intelligence inference workloads.

Its digital infrastructure group posted 31% revenue growth, although it recorded an operating loss of $11 million due to continued investment in scaling AI capabilities.

The company also reported high double-digit revenue growth in its AI server business, supported by deployments of rack-scale systems based on Nvidia’s GB200 NVL72 design.

Yang indicated AI demand is shifting from large language model training toward inference applications, prompting adjustments in Lenovo’s server portfolio.

The company expects the AI infrastructure market to triple by 2028 and recently introduced new enterprise servers for inference workloads in collaboration with AMD.

The warning on PC shipments suggests that even dominant manufacturers are not insulated from semiconductor volatility.

Whether higher pricing and AI expansion can fully offset shipment pressure depends on how long memory supply stays limited and how quickly production capacity adapts to demand changes.

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