On August 13, 2026, The Wall Street Journal reported that Lenovo Group Limited (OTC:LNVGY)’s first-quarter revenue jumped 43% year over year to $26.94 billion on AI hardware demand. The company now expects to hit its $100 billion annual revenue goal ahead of schedule, even as it swung to a net loss.
Intel Corporation (NASDAQ:INTC) raised $20 billion from an upsized stock offering the same week to help fund its own AI-driven manufacturing buildout.
Why This Matters
Both companies are capitalizing on the same AI hardware supercycle from opposite ends, one selling AI servers and PCs, the other trying to manufacture the chips that go inside them. So then which approach to funding this boom, Lenovo’s operating growth or Intel’s capital raise, looks more sustainable?
The Bull and Bear Case: Lenovo
Lenovo Group Limited (OTC:LNVGY)’s infrastructure-solutions segment, covering data-center hardware, saw revenue nearly double year over year on surging AI server demand, generating $777 million in operating profit. Its AI server order pipeline reached $54 billion, more than double a year earlier. CEO Yuanqing Yang described the business as “flying as fast as [a] Boeing 777.” Adjusted net profit nearly tripled to $1.075 billion. Despite a dip in shipments, Lenovo held its position as the world’s top PC maker with 24.2% market share. Counterpoint Research’s Ivan Lam said, “Lenovo’s AI story is compelling, with significant upside potential.”
Lenovo Group Limited (OTC:LNVGY) actually swung to a $609 million net loss, hurt by a nonrecurring fair-value loss tied to revaluing warrants issued in 2025. Worldwide PC shipments fell 4.9% year over year in the quarter, the first decline after nine straight quarters of growth, as the ongoing memory chip shortage pushed prices higher industry-wide. Lenovo’s Hong Kong-listed shares have already rallied roughly 150% in the June quarter alone and 275% for the year, raising the bar for what counts as good news at this point.
The Bull and Bear Case: Intel
Intel Corporation (NASDAQ:INTC)’s stock has nearly tripled this year, outperforming rivals AMD and Nvidia and the broader Philadelphia Semiconductor Index’s roughly 75% gain. The company won Tesla as a customer for its 14A manufacturing process. Intel raised its 2026 capital spending guidance from $18 billion to $20 billion in July.
AJ Bell’s Russ Mould noted Intel Corporation (NASDAQ:INTC) spent years “focusing on financial engineering rather than physical engineering.” It was a reference to $82 billion in share buybacks during the 2010s that weakened its balance sheet. The new offering was priced at a 2.6% discount to the prior close, and shares still fell more than 4% the same day.
Insider Monkey’s Hedge Fund Data
Intel Corporation (NASDAQ:INTC) was held by 112, up from 96.
Conclusion
Lenovo is proving the AI hardware boom is real through its own operating numbers, while Intel is still spending its way toward proving the same thing.
While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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