“The billion-dollar mergers and acquisitions 20 years ago saved Lenovo.”

In 2014, Lenovo acquired IBM’s x86 server business for $2.3 billion. After twenty years of strategic commitment, significant results were achieved. The second-quarter report in 2024 showed that the Infrastructure Solutions Group (ISG) had a 98% year-on-year increase in revenue, with operating profit reaching $777 million, making it Lenovo’s most dynamic business segment. Previously, this business faced low-profit difficulties for eight consecutive years until 2022 when profits began to improve for the first time. During the same period, Lenovo improved its overall profit margin by optimizing the structure of the ISG business, enabling the Intelligent Devices Group (IDG) to benefit from the replacement cycle, and allowing the Services Group (SSG) to operate independently. Although Lenovo has deepened its cooperation with Nvidia and accumulated a large number of AI orders, its capital expenditure remains relatively small. At the same time, it faces uncertainties in chip supply and the risk that potential orders may not be converted into recognized revenues, and it has not yet established a strong technical advantage.