China’s Lenovo said a temporary pause in tariff hikes between Washington and Beijing is a positive development, as the world’s largest PC maker reported stronger-than-expected quarterly earnings driven by surging demand for artificial intelligence products.

“The truce is a positive situation,” CEO Yang Yuanqing told Reuters on Thursday after the company released its fiscal first-quarter results. “It brings us more certainty rather than uncertainty.”

The U.S. and China have agreed to extend a tariff suspension for 90 days to November, averting steep new duties on each other’s goods. Chinese exports to the U.S., including PCs, still face a 30% levy, but Yang said the impact on Lenovo has been limited, with the U.S. accounting for less than 20% of total revenue and the company maintaining a diversified global manufacturing base.

Revenue for the three months to June 30 rose 22% year-on-year to $18.8 billion, surpassing analysts’ estimates of $17.4 billion, according to LSEG data. Net profit attributable to shareholders more than doubled to $505 million, beating expectations of $307.7 million.

Yang credited the growth to robust AI demand across Lenovo’s three main business segments, each posting double-digit gains. AI-enabled PCs made up more than 30% of all shipments in the quarter, while the company’s AI server business grew 150% on strong domestic demand.

“We see a strong pipeline in AI servers,” Yang said, adding that China’s AI infrastructure is expanding faster than in other regions. Lenovo, a partner of Nvidia in China, has also invested in local component development to diversify supply amid ongoing U.S.–China tensions over semiconductors.

Despite the upbeat results, Lenovo shares fell over 3% in early Hong Kong trading, underperforming a 0.4% rise in the Hang Seng Index. The stock has gained 15% in the past three months.