Xiaomi's Product Onslaught and €20B Buyback Can't Stem a 44% Stock Rout as Memory Costs Burn Profits
Published on 06/25/2026 at 17:45 | Redaktion boerse-global.de
Xiaomi has unleashed a barrage of new products in recent weeks — from a flagship gaming phone and a home NAS device to an ambitious glamping SUV concept. Yet its shares have shed 44% of their value since the start of the year, as exploding memory costs and persistent EV losses crush investor confidence. The stock closed at €2.56 on Wednesday, less than 2% above its 52-week trough and perilously close to chart support at €2.51.
The damage was laid bare in first-quarter results: adjusted net profit tumbled 43% to 6.1 billion yuan. Goldman Sachs expects a further decline of as much as 50% in the second quarter. The culprit is a relentless surge in semiconductor costs — smartphone DRAM has quintupled since the end of 2025, while TV memory prices have skyrocketed tenfold. Those cost pressures eat straight into the margins of Xiaomi's core handset business.
The electric-vehicle division remains the other major drag. It burned 3.1 billion yuan in the first quarter alone — roughly $5,600 per vehicle delivered. Xiaomi handed over only about 150,000 units through May, a pace that leaves it far short of its ambitious full-year target of 550,000 vehicles. The company is now pinning its hopes on a new sub-brand, Sky Nomad, targeting outdoor enthusiasts with the N90, a full-size SUV that features a range-extender system, all-wheel drive, air suspension and a rooftop tent. Priced at up to 450,000 yuan, the N90 takes direct aim at Li Auto and Aito when it debuts in the fourth quarter.
Delivery numbers will need to accelerate sharply in the second half to reassure jittery investors. So far, the production rate simply doesn't support management's stated goal. The N90's winter launch risks becoming a sideshow if the sales trajectory fails to improve.
Should investors sell immediately? Or is it worth buying Xiaomi?
On the bourse, the technical picture is ugly. The 14-day relative strength index sits at 20.6 — deep in oversold territory — and the shares trade nearly 39% below their 200-day moving average of €4.08. Short sellers have piled in, holding roughly 9% of the free float. Management launched a new buyback programme worth up to HK$20 billion in early June, but the previous such mandate consumed enormous sums without arresting the decline. The bearish momentum remains intact.
The hardware machine keeps humming regardless. On 24 June, Xiaomi unveiled its "Smart Storage" NAS system with up to 16 TB of capacity, tightly integrated into the HyperOS ecosystem. Crowdfunding runs from 1–8 July. The same day, the company announced the Redmi K90 Ultra, a gaming handset with an 8,550 mAh battery and 165 Hz display that launches on 30 June. A day earlier, the budget Redmi 17C hit the Chinese market as a volume driver. On the technology front, the YU7 GT SUV completed a fully autonomous 20.8-kilometre lap of the Nürburgring Nordschleife in 10 minutes 29 seconds on 8 June, validating Xiaomi's AI architecture under extreme conditions.
None of those achievements have translated into share price support. R&D spending reached 9 billion yuan, staffed by over 26,000 engineers, but investors focus on the bottom line rather than the product parade.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
The path to recovery hinges on two factors largely outside Xiaomi's control: an easing of chip costs and a narrowing of EV losses. Until one or both materialise, the stock remains at risk of breaking below €2.51 — a level that would mark a new 52-week low and deepen the rout that has wiped nearly half the company's market value since January.
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