7th March 2022 will be remembered as a memorable day for investors of Lenovo as the stock was included in the prestigious Hong Kong’s benchmark stock gauge – the Hang Seng Index. Consequently, Lenovo share price (HKEX: 992) rose steadily to a 52-week high of HK$9.00. The entry into Hang Seng Index capped a stunning turn of event as Lenovo scrapped its US$1.8 billion mega IPO in Shanghai Stock Market only in October 2021.
The bizarre withdrawal from Shanghai Stock Market had caused a temporary crisis of confidence for Lenovo share price as the counter dived 17%. But not for long as Lenovo share price (HKEX: 992) recovered swiftly from the crash following the inclusion into Hang Seng Index. In this regard, the volatility of Lenovo share price (HKEX: 992) is certainly not for the faint-hearted.
And that’s not all. Two weeks after Lenovo share price got included into Hang Seng Index, US Federal Reserves launched a series of interest rate hikes that rattled global stock market. During that period, Russia’s invasion of Ukraine added further turmoil to global financial market. These two events created uncertainties, causing sell-offs on growth stocks. Lenovo share price (HKEX: 992) was not spared from the carnage and the counter has been on a bearish run for pretty much of 2022.
Looking back, the ascend of Lenovo into the elite technology powerhouse is certainly stuff of legend (the company’s name was previously Legend Holdings). The acquisition of IBM’s PC business in 2005 had transformed the Lenovo from the biggest Asia computer maker to the global top computer maker. Subsequently, the acquisition of Motorola’s mobile phones business and IBM’s x86 server business in 2014 propelled Lenovo into an IT juggernaut with diversified businesses in PC, smartphones, software solutions and data centres.
According to IDC, Lenovo was the biggest PC manufacturer in 2022 with market share of 23.3%, having shipped a total of 68 million personal computing devices. Despite so, Lenovo share price (HKEX: 992) had endured a torrid form in 2022, falling from HK$9.00 in February 2022 to an abysmal low of HK$5.40 in October 2022. The counter then went on a mini rally to end the year at HK$6.60. The volatility of Lenovo share price (HKEX: 992) was indeed mind-blowing.
Looking back, the pandemic has led to a boom in the PC market. However, as the pandemic is quickly fading into history, the PC market collapsed in 2022, with global PC shipments fell 27.8% year-on-year in the final quarter of 2022. Apart from falling demands, Intel also warned that its clients are facing inventory stockpile. Against this backdrop, the PC market should continue its slump in 2023. However, it may be too quick for investors to dismiss Lenovo share price as the reopening of China may offset the global IT slump. In this article, I will share my insights on the outlook of Lenovo share price in 2023.Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Lenovo before. Whether Lenovo share price (HKEX: 992) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Lenovo share price swim or sink in 2023?
The PC, smartphones and data centres of Lenovo are powered by semiconductor chips. Based on data extracted [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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