Investing.com-- Lenovo Group (HK:0992), the world’s largest PC maker, is stockpiling memory chips amid an unprecedented supply squeeze due to the artificial intelligence industry, CFO Winston Cheng told Bloomberg TV on Monday.
The company is stockpiling component inventories that are roughly 50% higher than usual, Cheng said, as outsized memory demand from AI data centers and cloud hardware tightened memory chip supplies and ramped up prices.
This trend is also expected to raise the prices of consumer electronics, which could hurt demand for Lenovo’s products in the coming quarters.
But Cheng said the company also sees an opportunity to capitalize on its high inventories, and will aim to avoid passing on costs to its consumers.
The company clocked a mild decline in its September quarter profit last week, as increased spending on AI partially offset strong PC and device sales. Cheng signaled on Monday that the company is seeking to maintain its sales momentum.
In a post-earnings call, Lenovo signaled it had enough memory chips for 2026.
Global memory chip prices were seen increasing rapidly in recent months, as outsized demand from the AI sector saw major producers Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) prioritize making high-bandwith memory chips over traditional ones used in consumer electronics.
Top Chinese smartphone maker Xiaomi Corp (HK:1810) had warned this could push up smartphone prices next year.