The moment has arrived. In my previous article on Lenovo share price, I predicted that Lenovo share price should start to fly in the second half of 2023. True enough, as of 14 July, Lenovo share price (HKEX: 992) hit a high of HK$8.51, representing an increase of nearly 31% year-to-date. Question now is whether the rally of Lenovo share price will sustain?
Make no mistake. The current PC market is still mired in doldrums as Q1 2023 global PC shipments fell 28% year-on-year to reach 56.7 million units, the lowest quarterly numbers in the past 10 years. However, Lenovo share price started to climb steadily since late 2022, going from HK$6.40 to the current HK$8.00. The rally of Lenovo share price may be due to growing signs that the PC market has bottomed and the only way to go for the industry is upward.
According to data released by the Semiconductor Industry Association, the semiconductor industry saw month-to-month global chip sales inched upward in May 2023 for the third consecutive month, sparking optimism for a possible market rebound in the second half of 2023. The data indicated that the global inventory glut is easing off, and PC demand should gradually recover in the latter half of 2023. On the other hand, the explosive results of chipmaker Nvidia in May 2023 ignited rally in global tech stocks, especially those specialized in AI. These factors combined to turbocharge Lenovo share price.
Despite signs of PC market stabilizing in May 2023, Lenovo share price went into cold turkey, falling from HK$8.80 in April 2023 to a low of HK$7.15 in May 2023. The bearish form of Lenovo share price in May 2023 should be attributed to the dismal full year financial result for FY2022/23 that was released on 24 May 2023. That result knocked the wind out of Lenovo share price, but not for long as the counter staged a recovery following growing optimism of PC market recovery by end of the year.
At P/E ratio of just 8.4, Lenovo share price is not considered to be trading at a premium. In my opinion, there should be plenty of runway for Lenovo share price to continue its upward trajectory. In this article, I will share my insights on the outlook for 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 in sweet spot
First thing first. In the stock market, we all know the logic of buying low and selling high to make money. To achieve this, you need to determine the right entry price. In my opinion, Lenovo share price is [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.]Lifetime Membership
For members of SG Wealth Builder logging in from Apple or Mac devices, please access through this link. This allows for one-time log in only (instead of having to key in user-id and password twice).
Congratulations on your first step to becoming part of SG Wealth Builder community! For a one-off payment of $100, you can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.
The full benefits and privileges of SG Wealth Builder Membership:
- Access to the latest premium articles of SG Wealth Builder
- Email notifications of latest blog articles
- Request for coverage on stocks, insurance and other personal financial topics
- Comment in articles
Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.