Memory Cost Crisis and EV Slowdown Send Xiaomi Stock Tumbling 45% This Year
Veröffentlicht: 30.06.2026 um 07:45 Uhr, Redaktion boerse-global.de
Xiaomi's stock is clinging to its 52-week low at around €2.47, having shed roughly 45% since the start of the year, as a punishing combination of soaring memory chip costs and a sluggish electric vehicle rollout overwhelms the company's latest product push. The launch of the Redmi K90 Ultra — a gaming smartphone featuring an active air-cooling system that can drop internal temperatures by 10°C in under two minutes — has done little to arrest the slide.
The root cause lies in the exploding price of DRAM and NAND flash memory. Prices have roughly doubled as AI data centre operators, led by Nvidia, vacuum up available supply, squeezing the production capacity allocated to cheaper smartphone-grade components. Counterpoint Research expects this tightness to persist until at least the end of 2027. The impact on Xiaomi has been brutal: roughly 60% of its handsets sell for less than $200, leaving margins extraordinarily exposed to component inflation.
In the first quarter of 2026, operating profit crashed 70% year on year, while revenue fell 11% — the company’s first quarterly sales decline in three years. Smartphone shipments slid 19% in the period, and analysts now forecast a full-year drop of nearly 30%. On its home turf in China, IDC has already removed Xiaomi from the top-five ranking after a sharp demand slump.
Should investors sell immediately? Or is it worth buying Xiaomi?
Management is betting on a premium pivot to offset the pain. The Redmi K90 Ultra, priced around $440 (under 3,000 yuan in China), uses an older Snapdragon processor paired with a large battery and that novel air-cooling system. In internal tests, the device sustained high frame rates for hours without throttling. Xiaomi has also been pushing higher-margin models more aggressively; last quarter, average selling prices rose even as unit volumes contracted.
But the troubles extend beyond smartphones. Xiaomi’s electric vehicle business, which the company hoped would be a growth engine, is stalling. Management targets 550,000 deliveries this year, yet from January to May only about 150,000 units left the factory. May sales actually dropped 11% month on month, deepening investor unease.
Analyst views are sharply divided. Goldman Sachs rates the stock a Buy with a price target of 40 Hong Kong dollars, while Jefferies has slapped an Underperform rating and a target of roughly 25 Hong Kong dollars. Short sellers now hold 9% of the free float, and a multi-billion-dollar share buyback programme has failed to stem the decline. The relative strength index has fallen to 19.7, signalling technically oversold conditions, but the fundamentals offer little reason for a snapback.
Xiaomi has responded by jacking up its R&D budget to 40 billion renminbi, betting heavily on new technologies to rebuild margins. Whether that bet pays off will become clearer in the second half of 2026, when the company must demonstrate that it can protect profitability amid relentless input cost inflation and a cooling EV market. For now, the market is pricing in a long, tough road ahead.
Ad
Xiaomi Stock: New Analysis - 30 June
Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer zu unseren Artikeln: Keine Anlageberatung, keine Kauf oder Verkaufsempfehlung. Angaben zu Kursen, Unternehmen und Märkten ohne Gewähr; Änderungen jederzeit möglich. Börsengeschäfte können zu hohen Verlusten führen. Unsere Beiträge werden ganz oder teilweise automatisiert mit Unterstützung von AI erstellt und geprüft.
