Xiaomi Shares Stumble to 52-Week Low Despite Chip Breakthrough and SUV Push
23.06.2026 - 18:26:30 | boerse-global.de
Investors are giving Xiaomi’s grand technology pivot a thumbs-down, sending the stock to the brink of a record low even as the company unveils an in-house processor and expands its electric vehicle lineup. Shares slid 4.65 percent on Tuesday to €2.54, barely above the all-time trough of €2.51. The year-to-date decline now exceeds 43 percent.
The bleeding has persisted despite a massive share buyback program launched in early June, under which Xiaomi plans to repurchase up to 20 billion Hong Kong dollars of its own equity. The relative strength index has sunk to 20.7, a level that typically signals deeply oversold conditions, yet buying pressure remains absent. Analysts say concrete improvements in core operations are needed for a genuine rebound.
Own Silicon Takes Aim at Qualcomm
Hoping to emulate Apple’s playbook, Xiaomi is pushing ahead with self-designed processors. President Lu Weibing confirmed that the company’s own chip, the Xuanjie O3, will enter production in the second half of 2026. Taiwan Semiconductor Manufacturing Company (TSMC) has been tapped as the foundry. The chip uses a novel prime-core architecture clocked at 4.05 gigahertz, and early benchmark tests put its performance on par with Qualcomm’s top-tier models. The move is intended to sharply boost processing power and artificial intelligence capabilities.
Research and development spending already reached nine billion yuan in the first quarter, with full-year spending projected to hit around 40 billion yuan. That outlay is putting intense pressure on margins.
Should investors sell immediately? Or is it worth buying Xiaomi?
Two SUVs, Two Price Points, One Big Tab
Xiaomi’s automotive ambitions are escalating rapidly. The Chinese Ministry of Industry and Information Technology has greenlit the company to manufacture vehicles with range extenders — a configuration that pairs a small combustion engine with a battery pack. To shield its core brand, Xiaomi has created a sub-brand called Skynomad.
The first model under that label, the Kunlun N3, is a sport utility vehicle aimed squarely at families, with a headline price of roughly 200,000 yuan. That undercuts established rivals like Li Auto by a wide margin. A second, larger full-size SUV, the N90, was spotted by Chinese media during road tests and is expected to be officially unveiled in the fourth quarter of 2026, with a price range of 200,000 to 450,000 yuan. Both vehicles are designed to travel up to 1,500 kilometers on a combination of battery charge and fuel, while the N90 alone can manage 500 kilometers on pure electric power.
The problem is cost. Xiaomi’s electric vehicle division posted an operating loss of 3.1 billion yuan in the first quarter, equating to roughly $5,600 lost on every vehicle delivered. Weaker sales of the premium SU7 Ultra model, declining government subsidies, and rising component prices are all squeezing margins further.
Headwinds Multiply in the Showroom and at the Factory Gate
The timing of Xiaomi’s automotive push could hardly be worse. Wholesale shipments of range-extender hybrid vehicles in China plunged nearly 25 percent in May — the sharpest monthly drop in five years. Even industry leader Li Auto is struggling with sliding demand.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
Nor is the core smartphone business providing any cushion. Adjusted net profit for the handset division plummeted 43 percent in the first quarter, while global shipments slumped 19 percent. No other major handset maker lost ground as quickly.
Xiaomi will report second-quarter results on August 26. By then, management must demonstrate that its expensive hardware offensive is starting to pay off. For now, the gap between technological vision and financial reality has rarely been wider.
Ad
Xiaomi Stock: New Analysis - 23 June
Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
