Record-breaking Surge in Xiaomi Shares: Increase in Shipment Forecasts
Xiaomi’s shares reached a historical peak in Hong Kong, showing a 12% increase. The company attracted investors’ attention with the announcement of two new products – the high-end SU7 Ultra electric vehicle and the 15 Ultra smart phone – to be released by the end of the month. Additionally, an increase in demand for existing Xiaomi smart phones under China’s national consumer stimulus program has accelerated the company’s growth. HSBC analyst Frank He raised his smart phone shipment forecasts for 2025 and 2026 by 2% and 3%, respectively.
Xiaomi’s shares soared to a historical peak in Hong Kong, attributed to new product launches and benefits from China’s national stimulus program.
This week, Xiaomi’s shares rose by 12%, gaining momentum after the company announced plans to release two new products: the high-end SU7 Ultra electric vehicle and the 15 Ultra smart phone by the end of the month.
Moreover, the increased demand for existing Xiaomi smart phones under China’s consumer stimulus program has contributed to the surge. INCREASE IN SHIPMENT FORECASTS
HSBC Holdings Plc analyst Frank He raised Xiaomi’s smart phone shipment forecasts by 2% for 2025 and 3% for 2026.
The inclusion of wearable devices in China’s stimulus program stands out as another factor supporting Xiaomi’s short-term growth.
DEEPSEEK IMPACT Additionally, the analyst noted that Xiaomi could benefit from the rapid decline in artificial intelligence costs.
The launch of the DeepSeek R-1 artificial intelligence model was one of the main factors triggering this decline.
CHINESE TECHNOLOGY SHARES ON THE RISE
Chinese technology shares surged with an increase in investor interest in internet companies following the debut of DeepSeek, nearing a bull market. Xiaomi shares performed above expectations, rising by over 120% in 2024, especially gaining momentum after entering China’s electric vehicle (EV) market and outperforming global competitors like BYD Co. and XPeng Inc. This growth is expected to continue in 2025, with HSBC predicting an increase in delivery volumes alongside Xiaomi’s expanding factory capacity.
