Xiaomi’s EV Division Hits Full Stride While Memory-Chip Squeeze Keeps the Stock Teetering
Published on 07/04/2026 at 10:02 | Redaktion boerse-global.de
Xiaomi is delivering more electric vehicles than ever, but its shares are clinging to the floor. The stock closed at €2.65 on Friday, a 3% gain on the day and an 8% bounce over the week, yet those small bounces do little to erase a 41% year-to-date rout. The contrast between operational momentum and market sentiment has rarely been starker.
The problem starts with memory chips. A global AI frenzy is driving up prices for DRAM and NAND storage, squeezing Xiaomi’s handset margins. The company cannot pass those higher costs to consumers without sacrificing market share, leaving its flagship hardware business under relentless pressure. Analysts warn the chip headwind could persist deep into 2027. That existential margin worry has overwhelmed even a record buyback: the board authorized up to HK$20 billion in share repurchases in early June, yet the stock still trades within a whisker of its 2026 low of €2.34, set just a few weeks ago.
Meanwhile, the EV business is writing its own story. Xiaomi handed over more than 30,000 cars for the third consecutive month in June, pushing first-half deliveries past 180,000 units. The company’s full-year target stands at 550,000 vehicles for 2026, an ambition that has drawn cautious optimism from analysts at Citi. They see the forthcoming YU9 luxury SUV, due to hit showrooms in August, as a potential catalyst that could break the stock out of its rut.
Should investors sell immediately? Or is it worth buying Xiaomi?
But the chart tells a different tale. The shares languish 33% below the 200-day moving average of €3.97 and remain under the 50-day line at €3.06. The RSI sits at 40.5, offering only a mild reprieve from oversold conditions, while the 52-week high of €6.51 looks like a distant memory. Technical resistance is formidable, and the repurchase programme has so far failed to engineer a sustained recovery.
Supporters point to the service business and premium phone strategy as long-term offsets. Xiaomi’s growing global user base is generating higher-margin recurring revenue, and models such as the Xiaomi 17 Ultra are lifting average selling prices. Yet skeptics counter that the auto division’s capital demands are burning cash even as production ramps up, compounding the pressure from rising component costs.
The next clear inflection point comes on August 26, when Xiaomi reports second-quarter earnings. Until then, investors will watch two metrics: sustained EV delivery momentum and any sign that memory-chip prices have peaked. If the YU9 launch and a stabilisation in component costs align, the stock could finally build on its tentative recovery. If not, the floor at €2.34 may prove to be a false floor.
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