MORRISVILLE – Lenovo on Monday received a Wall Street boost when financial services and investment firm Morningstar praised – for the most part – the world’s top PC manufacturer despite a worse-than-expected earnings report last week.

“Although the weaker-than-expected loss at the server business disappointed the market, we believe Lenovo’s fundamentals are not as bad as the numbers look, and the PC business is in the recovery phase from the inventory adjustment, as we had expected,” wrote .

Lenovo reports big loss, plans to invest another $1B in artificial intelligence

Citing numerous factors such as reduced inventory and the firm’s More confident” belief that PC replacement demand witll “pick up,” Ito said Morningstar “believes its shares are undervalued.”

Regarding Lenovo’s recent $1 billion pledge to invest in artificial intelligence and a pledge of another billion last week, Morningstar noted its disappointment “that Lenovo did not benefit from the emerging artificial intelligence investment and was not able to offset the slower investment in general servers.”

Read the full analysis online.

Lenovo operates one of its two global headquarters in Morrisville. The other is in Beijing.