Lenovo Views U.S.-China Tariff Pause as Positive Amid AI Growth

/in /tarafından

Chinese PC maker Lenovo (0992.HK) said Thursday that the recent tariff pause between the U.S. and China is a positive development and highlighted strong growth in China’s AI infrastructure despite ongoing tech tensions.

“The truce is a positive situation,” Lenovo CEO Yang Yuanqing told Reuters following the release of the company’s fiscal first-quarter results. “We feel better than the previous quarter — it brings more certainty rather than uncertainty.”

The U.S. and China have extended a tariff pause for another 90 days until November, avoiding triple-digit duties on each other’s goods and providing temporary relief to businesses.

Lenovo reported total revenue of $18.8 billion for the three months ending June 30, up 22% year-on-year and surpassing analysts’ forecast of $17.4 billion, according to LSEG data. Yang attributed the growth to strong AI demand across the company’s three main business segments, each of which achieved double-digit growth.

Despite a 30% U.S. levy on Chinese exports, including PCs, Lenovo’s CEO noted that the U.S. represents less than 20% of the company’s total revenue, and tariffs have so far had minimal impact thanks to Lenovo’s global manufacturing network. Net profit attributable to shareholders more than doubled year-on-year to $505 million, exceeding the consensus estimate of $307.7 million.

AI PCs represented over 30% of Lenovo’s PC shipments in the first quarter, while the AI server business surged 150% amid strong domestic demand. “We see a strong pipeline in AI servers,” Yang said.

China has recently advised major internet firms to be cautious when purchasing Nvidia H20 chips and to consider domestic alternatives, following the U.S. approval to resume H20 chip sales to China. Yang highlighted Lenovo’s investment in diversifying its supply chain and developing local component products to meet varied customer needs.

Lenovo shares dropped more than 3% in early trading Thursday, underperforming the Hang Seng Index, which rose 0.4%. However, the stock has gained 15% over the past three months, outpacing the benchmark.

Cisco Forecasts Strong Q1 Revenue as AI Drives Networking Demand

/in /tarafından

Cisco Systems expects first-quarter revenue between $14.65 billion and $14.85 billion, exceeding Wall Street estimates, fueled by surging demand for networking equipment driven by artificial intelligence. Hyperscale cloud and enterprise AI investments are boosting orders, with Cisco reporting over $2 billion in AI infrastructure sales for fiscal 2025, more than double its target. Networking product orders rose in double digits across webscale infrastructure, enterprise routing, switching, industrial IoT, and servers. Cisco is also partnering with state-backed AI initiatives in Saudi Arabia and Bahrain. CEO Chuck Robbins expects AI-driven opportunities to further expand in fiscal 2026.

Paramount Plans Bigger Film Slate, Retains Cable Networks After Skydance Merger

/in /tarafından

Paramount Global will expand feature film production while keeping its cable networks, including Nickelodeon, MTV, and BET, following its $8.4 billion merger with Skydance Media. The studio aims to increase annual movie releases from eight to 15, eventually reaching 20 films, featuring franchises like “Star Trek” and “Transformers,” alongside original titles such as Timothée Chalamet’s “High Side.” Paramount executives view legacy cable channels as strategic assets for streaming and plan to leverage emerging technologies, including AI, to enhance storytelling. The approach contrasts with rivals like Warner Bros Discovery and Comcast, which are spinning off their cable networks.