Xiaomi is a top 2026 long pick after a valuation correction and robust, albeit non-linear expansion, especially in EVs. EV sales surged past expectations in 2025, and 2026 guidance, while softer, still implies strong 34% YoY growth within China. Smartphone headwinds are material but manageable, as the segment now contributes only 20% to gross profit amid other higher-margin ecosystem growth.
Xiaomi is reiterated as a buy here, due to the discounted valuations from the recent sell-off and the excellent monetization opportunity from the diversified Human x Car x Home ecosystem. XIACY faces near-term EV headwinds from the reduced domestic tax incentives, the intensified domestic/international competition, and the potential FY2026 gross margin deterioration. This is on top of the ongoing memory chip supply constraints, with it potentially pressuring smartphone margins and/or bringing forth a demand downturn in 2026.
Xiaomi's latest buyback saw its shares pop in trading on Friday. Investors remain cautious amid chip cost pressures and an EV price war in China.
China's Xiaomi began taking pre-orders on Wednesday for an upgraded version of its SU7 model, aiming to boost the popularity of the company's best-selling electric sedan in the highly competitive Chinese market.
Xiaomi is a diversified Chinese tech giant with strong positions in smartphones, IoT, Internet services, and a new push into electric vehicles. XIACY growth drivers include premium smartphone upgrades, global expansion of IoT/home appliances, and ecosystem integration via HyperOS and the 'Human × Car × Home' strategy. The EV segment is projected to grow rapidly, leveraging the company's brand, pricing, and ecosystem, though market share remains modest vs. global leaders.
China's Xiaomi reported a 22.3% jump in third quarter revenue on Tuesday as the world's third-largest smartphone maker doubled down on its shift into electric vehicles.
Chinese smartphone manufacturer Xiaomi on Friday said surging memory chip prices have raised the cost of making handsets, after pricing of its new Redmi K90 series drew market disappointment.
The 20% drop since July finally represents desirably attractive entry points. Soft smartphone growth is offset by strong IoT growth and margin expansion. According to reports, Q3 EV deliveries have reached almost 109,000 units, exceeding my expectations and likely leading to a beat of management's FY goal of 350,000.
Chinese electric vehicle maker Xiaomi will resolve software issues for 116,887 SU7 sedans through a recall due to insufficient early warnings when highway pilot assisted driving is activated, the market regulator said on Friday.
Xiaomi Corporation (OTCPK:XIACF) Q2 2025 Earnings Conference Call August 19, 2025 7:30 AM ET Company Participants Ran Xu - Corporate Participant Sai Wai Lam - Vice President & CFO Weibing Lu - Partner, President of the Group & President of the International Business Department Conference Call Participants Andy Meng - Morgan Stanley, Research Division Hiu King Wong - Citigroup Inc., Research Division Jian Kuai - Orient Securities Co. Ltd, Research Division Leping Huang - Huatai Securities Co., Ltd., Research Division Timothy Zhao - Goldman Sachs Group, Inc., Research Division Yingbo Xu - Citic Securities Co., Ltd.
Qualcomm QCOM posted a solid fiscal third-quarter performance on Wednesday, boosted by continued growth in its automotive and IoT businesses.
I have fully exited Apple and have started accumulating Xiaomi during early April weakness. After only 4 quarters in operation, Xiaomi's EV business has exceeded my forecasts in volume and is growing rapidly. The segment is close to turning profitable on an operating level. Non-EV segments remain strong, with double-digit revenue growth and high-margin Internet Services, supporting Xiaomi's diversified business model and financial health.