LENOVO GROUP shares surged 5.17% during intraday trading on Thursday, as investors positioned ahead of the company's fiscal first-quarter earnings release and reacted to bullish analyst calls highlighting its AI infrastructure pivot.

The rally comes as Lenovo is scheduled to report its FY2027 Q1 results after the market close, with consensus revenue estimates at approximately $22.27 billion, a 28.19% year-over-year increase. Morgan Stanley issued a bullish note forecasting revenue of $24 billion for the quarter, well above consensus, and raised its target price to HK$34. The bank's adjusted net profit forecasts for the next three fiscal years are 14% to 25% above market expectations, reinforcing positive sentiment around hardware stocks.

Additionally, Lenovo's AI server order backlog has reached $21 billion, with multiple institutions projecting its ISG segment revenue to grow 45% to 60% year-over-year, representing the largest source of growth elasticity. The stock has surged over 220% year-to-date, with its market capitalization exceeding HK$350 billion, as its valuation framework shifts from a traditional PC manufacturer to a core AI infrastructure supplier.