Xiaomi’s Multifront Offensive Fails to Halt Stock as Profit Squeeze Deepens
18.06.2026 - 16:15:11 | boerse-global.de
Xiaomi is throwing everything it has at the market — a new AI assistant, regulatory clearance for a family hybrid SUV, and a share buyback worth billions — but investors are selling the stock at a pace that has driven it to a fresh 52-week low. The equity touched €2.67 on Thursday, extending its year-to-date slide to roughly 40%.
The latest in a string of bullish catalysts came on June 16, when Xiaomi launched MiMo Claw, a cloud-based AI agent capable of executing over 1,000 tool calls in a single session while maintaining context. The company claims the system cuts token consumption by up to 60% compared with rival products and achieved a high completion rate in internal testing. Users can test the assistant free for four hours daily.
Management also tried to stem the bleeding with its own cash. Tuesday saw Xiaomi repurchase shares worth more than HK$100 million, part of a standing buyback programme that authorises up to HK$20 billion in total. So far, the market has shrugged off both the AI debut and the capital move.
That same week, China’s Ministry of Industry and Information Technology concluded the public comment period for Xiaomi’s first range-extender electric vehicle. The model, internally codenamed Kunlun N3, will launch under the new Skynomad sub-brand — a deliberate shift to protect the sporty image of the main Xiaomi marque while targeting family buyers. The hefty SUV offers a combined range of roughly 1,500 kilometres and is priced aggressively at around 200,000 yuan, undercutting rivals such as Li Auto, whose comparable models typically start at a quarter of a million yuan.
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Yet the EV division is bleeding cash. In the first quarter it posted an operating loss of 3.1 billion yuan, and margins are wafer-thin. Vice-President Song Gang acknowledged the strain, saying survival depends on efficient supply chains. The rollout is also losing momentum. Xiaomi delivered only about 33,000 vehicles in May, down nearly 11% from April. January-to-May cumulative deliveries stood at roughly 150,000 units, a pace that leaves the company’s 2026 target of 550,000 vehicles looking increasingly optimistic.
The smartphone business, traditionally the group’s profit engine, is under pressure as well. While customers are paying record prices for Xiaomi handsets, the cost of expensive memory chips has squeezed the gross margin to a meagre 10.1%. R&D spending surged 33% year-on-year in the first quarter to nine billion yuan, with annual expenditure planned at 40 billion yuan.
Analysts are turning more cautious. Jefferies downgraded the stock to Underperform, setting a new target price of 25.49 Hong Kong dollars, equivalent to roughly €2.82. Goldman Sachs expects adjusted net profit to halve in the second quarter, falling to about 5.4 billion yuan. The bank maintained its target of 40 Hong Kong dollars but slashed its full-year forecast.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
Technically, the selling looks extreme. The relative strength index sits at 25.2 — deep in oversold territory — and the stock now trades more than 35% below its 200-day moving average. All eyes are on the second-quarter earnings release scheduled for August 26 (or August 28, depending on the reporting line). That is when the market will see exactly how much the hybrid push, the AI launch, and the buyback have done to offset the mounting losses in Xiaomi’s automotive gamble.
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