Lenovo’s $5.6B Q4 AI Server Revenue Raises Google Cloud Competition Concerns
GOOG•Reddit’s stock rebounded 20% after Q1 revenue climbed 69%, underscoring Google’s exposure to its search-traffic dependence and AI data licensing renewal risks. Investors yanked $2.8 billion from Bitcoin ETFs into AI tech names while Lenovo’s ISG reported $5.6 billion in Q4 AI server sales, highlighting on-prem competition for Google Cloud.
1. Reddit’s Stock Rebound and Google Exposure
Reddit shares surged 20% from May lows after reporting Q1 2026 revenue growth of 69% and strong profitability metrics. The rally highlights Google’s stake in Reddit’s advertising and search-driven traffic, while upcoming AI data licensing renewals and user growth deceleration pose potential headwinds for Google’s ecosystem.
2. Capital Flow from Crypto to AI Tech Names
Investors pulled a record $2.8 billion from Bitcoin ETFs over nine sessions as Bitcoin slid 4% in May, rotating funds into AI-focused technology stocks. This shift has favored large-cap names like Google, reflecting growing confidence in AI-driven revenue streams over digital-asset hedges.
3. Lenovo’s AI Server Growth and Implications for Google Cloud
Lenovo’s Infrastructure Solutions Group posted $5.6 billion in Q4 AI server revenue, up 37% year-on-year, driving a 109% May gain for its stock. The expansion of on-premise AI deployments by enterprises underscores mounting competition for Google Cloud in the AI infrastructure market.
