Xiaomi’s AI Platform Processes 1 Trillion Tokens Daily, Yet Stock Hits 52-Week Low on 50% Profit Warning and EV Losses
Published on 06/18/2026 at 11:41 | Redaktion boerse-global.de
Xiaomi is riding a wave of artificial-intelligence momentum that would make most tech investors envious. The company’s MiMo platform now handles more than one trillion tokens per day, and this week it rolled out a new cloud-based AI assistant called MiMo Claw that can execute over 1,000 tool calls in a single session while cutting token consumption by up to 60% versus competing products. On top of that, Xiaomi has begun migrating users to the upgraded V2.5 architecture, with older versions scheduled to be switched off by the end of June. Yet none of this has been enough to prop up the stock.
The shares tumbled to a new 52-week low of 2.70 euros in Hong Kong, later recovering slightly to around 2.73 euros. Since the start of the year, they have lost roughly 39% of their value. The sell-off has been so relentless that even a record buyback programme – worth 20 billion Hong Kong dollars overall, with over 100 million Hong Kong dollars spent on Tuesday alone – has failed to stem the tide. With a relative strength index hovering around 26, the stock is technically deep in oversold territory.
The fundamental trigger for the rout is a looming profit shock. Goldman Sachs expects Xiaomi’s adjusted net income for the second quarter to plunge by up to 50%, landing at around 5.4 billion yuan. The culprit: a surge in spending that shows no signs of abating. Research and development costs jumped 33% in the first quarter to 9 billion yuan, fuelled almost entirely by the company’s costly push into electric vehicles.
Should investors sell immediately? Or is it worth buying Xiaomi?
That EV division is bleeding cash at an alarming rate. The segment posted an operating loss of 3.1 billion yuan in the first quarter, with margins squeezed by the transition to the updated SU7 model. Vice President Song Gang has described those margins as “extremely thin,” adding that survival hinges on efficient supply chains. Delivery figures are equally sobering. Xiaomi shipped roughly 33,000 vehicles in May, down about 11% from the previous month, and cumulative deliveries for the first five months stand at around 150,000 units. That leaves the full-year target of 550,000 units looking increasingly unattainable.
In a bid to revive its auto business, Xiaomi has secured regulatory approval to produce range-extender vehicles under a new brand called Skynomad. The first model, code-named Kunlun N3, will be a large SUV. But the timing is treacherous: the Chinese market for this type of vehicle recently shrank by nearly 25%, raising questions about demand just as Xiaomi enters the fray.
The core smartphone business is also showing cracks. While average selling prices have hit record highs, expensive memory chips have compressed gross margins to just 10.1%, leaving little room for error. Analysts are taking note. Jefferies has downgraded the stock to Underperform with a target of 25.49 Hong Kong dollars (roughly 2.82 euros). Goldman Sachs, meanwhile, has trimmed its full-year profit forecast but maintains a more optimistic target of 40 Hong Kong dollars.
With the Q2 earnings report due on August 26, all eyes will be on management to deliver some operational relief. The company is betting that its own in-house chips can eventually restore margins in smartphones and EVs alike. Until then, the combination of heavy AI investment, a loss-making car division and a weakening Chinese market for hybrids leaves the stock grappling with headwinds that no amount of buybacks or AI fanfare can easily dispel.
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