The stock jumped 12% this week after Xiaomi announced it would roll out two new products—a premium SU7 Ultra vehicle and the 15 Ultra phone—by the end of the month. Plus, their current smartphones are benefiting from increased consumer subsidies in China.
HSBC analyst Frank He has upped his projections for Xiaomi's smartphone shipments by 2% for 2025 and 3% for 2026. He noted that the inclusion of wearable devices in the subsidy program is another short-term growth driver for Xiaomi. Additionally, the company could gain from the rapidly falling costs of AI, especially with the launch of the AI model DeepSeek R-1.
“With Xiaomi having one of the most established AIoT device platforms globally, we’re feeling optimistic about its growth prospects,” he mentioned.
Chinese tech stocks are nearing a bull market, fueled by the excitement around DeepSeek and its impact on China’s internet companies.
Xiaomi's stock has soared over 120% in 2024, driven by a stronger-than-expected entry into the EV market, outpacing competitors like BYD Co. and XPeng Inc. This growth trend is expected to continue this year, with HSBC predicting an increase in delivery volumes as factory capacity ramps up.