Xiaomi’s Dual Catalysts: A Chip IPO Windfall and an SUV Blitz Lift the Stock
Published on 07/28/2026 at 03:20 | Redaktion boerse-global.de
Xiaomi’s shares staged a sharp rally on Monday, climbing 7.79% to close at €3.23, as two powerful catalysts converged: the blockbuster market debut of a key portfolio company and an ambitious expansion of its electric-vehicle lineup. The move extended a broader recovery that has seen the stock gain 31.57% over the past 30 days, though the year-to-date picture remains firmly in the red.
The standout event was the initial public offering of ChangXin Memory Technologies (CXMT), the Chinese memory-chip maker in which Xiaomi holds a strategic stake. CXMT’s shares more than quintupled on their first day of trading, surging over 460%, which in turn boosted the market value of Xiaomi’s investment. For investors, the windfall underscores a growing narrative: Xiaomi is increasingly benefiting not just from its core handset and IoT businesses, but from a portfolio of tech equity holdings that can deliver outsized returns.
Adding to the momentum, Xiaomi founder and CEO Lei Jun took to Weibo to announce a technology showcase scheduled for July 30, where the company will unveil two new premium SUV models — the N70 and N90. The reveal is part of a broader push into the electric-vehicle segment, with Xiaomi targeting 550,000 vehicle deliveries for the full year 2026. Thursday’s presentation is expected to include details on the “Xiaomi Kunlun” technology architecture, giving investors a clearer view of how the company intends to position itself against established EV players.
Should investors sell immediately? Or is it worth buying Xiaomi?
Yet beneath the headline-grabbing gains, a quieter but persistent force is at work: a share buyback program that has been running since early June. The board authorized repurchases of up to 2.58 billion shares, and so far the company has bought back roughly 79.8 million — a small fraction of the available mandate. The buybacks began when the stock was plumbing its year-to-date low, and while they have provided a floor, the program’s scale remains modest relative to the authorization.
The rally has not erased all technical concerns. Despite the recent surge, Xiaomi’s shares still trade roughly 14% below the 200-day moving average, a widely watched gauge of long-term trend direction. Short-term momentum indicators are flashing overbought, though that has not yet derailed the advance. The stock remains far from the 52-week high it set in September 2025, and the year-to-date performance is still deeply negative.
The upbeat news flow stands in sharp contrast to Xiaomi’s most recent financial results. For the first quarter of 2026, the company reported revenue of 99.14 billion renminbi (approximately $13.7 billion), a decline of 10.9% year-over-year. Adjusted net profit came in at 6.07 billion renminbi. The numbers highlighted persistent headwinds in Xiaomi’s core smartphone business, even as the company pivots toward higher-growth areas like EVs and chip investments.
Investors now face a two-week window packed with potential inflection points. Thursday’s SUV presentation will test whether the EV narrative can sustain its current momentum, while the half-year earnings report, scheduled for August 18, will reveal whether the first-quarter revenue decline was a temporary blip or the start of a deeper trend. Until then, the market is betting that Xiaomi’s new growth engines — from chip stakes to electric SUVs — can outweigh the drag from its legacy operations.
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