Xiaomi Sinks to 52-Week Low Despite New SUV, Earlier Smartphone Launch, and HK$20 Billion Buyback
30.05.2026 - 14:13:09 | boerse-global.de
Xiaomi is throwing everything it has at the market — a record-setting electric SUV, an early flagship smartphone launch in Europe, and the largest share buyback in its history — yet its stock has slumped to a 52-week low. The disconnect between product momentum and investor sentiment has rarely been wider.
Net profit in the first quarter of 2026 collapsed 57% to 4.7 billion yuan, while adjusted profit fell 43% to 6.1 billion yuan, well short of analyst forecasts. Overall revenue dropped 11% to 99.1 billion yuan (roughly $14.6 billion). The culprit is a surge in memory-chip prices: DRAM and NAND flash costs have roughly doubled over recent quarters, fueled by insatiable demand from AI data centers. Chief executive Lei Jun warned the pressure could persist for another two years.
The smartphone segment bore the brunt. Xiaomi shipped just 33.8 million units, a 19% year-on-year decline — the steepest drop among the world’s top five handset vendors. Segment gross margin slid to 10.1%. In response, the company accelerated the launch of its T-series flagship line. The 17T series debuted in Vienna on May 28, a full four months earlier than the previous generation. The base model starts at €749 in Europe, powered by a Dimensity 8500 chip and a 6,500 mAh battery, while the Pro version — at €999 — packs a Dimensity 9500, a 144Hz OLED display, a 7,000 mAh cell with 100-watt fast charging, and Leica camera optics. Xiaomi also unveiled the Watch S5, Smart Band 10 Pro, and new audio devices alongside the phones.
The electric-vehicle division delivered 80,856 cars in the quarter, up 6.6% from a year earlier, but slipped back into an operating loss of 3.1 billion yuan after briefly turning profitable in 2025. Xiaomi aims to more than compensate with scale: the 2026 delivery target stands at 550,000 vehicles, a 34% increase. In China, the new YU7 GT crossover has already made headlines by setting a production-SUV lap record at the Nürburgring — 7 minutes 22.755 seconds, roughly 12 seconds faster than the previous mark. The dual-motor system generates 1,003 hp, launches from 0 to 100 km/h in 2.92 seconds, and the 101.7 kWh battery delivers a claimed range of up to 705 km.
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The European push is being readied in parallel. Xiaomi EV plans to enter the market in the second half of 2027, starting with Germany using a city-by-city rollout. Right-hand-drive markets — the UK, Japan, Australia, and India — are scheduled for the first half of 2028. A research and design center has been opened in Munich, led by a former BMW executive.
Group president William Lu Weibing described the elevated memory costs as a “new normal” but expects some relief from the third quarter. The EV business is meant to reduce long-term dependence on the smartphone cycle, but the timing of that shift hinges on how quickly chip prices ease.
One day after the stock touched its 52-week low in Hong Kong, Xiaomi bought back 10.5 million shares in a single session for about 298 million Hong Kong dollars. The buyback is part of a newly authorized program worth HK$20 billion (approximately $2.55 billion), running for 12 months starting June 2, 2026 — a clear signal from management that it considers the shares undervalued.
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In Frankfurt, the stock is trading at €3.08, exactly its 52-week trough. The price has fallen more than 31% since the start of the year and nearly 46% over the past twelve months, sitting more than 53% below the June 2025 peak. First batch order numbers for the YU7 GT are expected next week and could offer the earliest real test of whether Xiaomi’s product blitz can shift the narrative.
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