Xiaomi's Product Onslaught Collides With a Profit Squeeze as Stock Sinks to 52-Week Low
27.06.2026 - 22:12:17 | boerse-global.de
Xiaomi is flooding the market with new gadgets — a gaming flagship smartphone, smart refrigerators, wireless earbuds, even a graphene eye massager — yet its stock just hit a fresh 52-week low of €2.34. The disconnect between operational energy and investor sentiment has rarely been sharper. While the company churns out products at a blistering pace, a two-front crisis in memory costs and electric-vehicle losses is crushing margins and sending the shares into a tailspin.
The stock closed Friday at €2.46, down 0.81% on the day and 45.23% below its start to the year. Over the past twelve months, the slide has reached 63.24%. The relative strength index on a 14-day basis has plunged to 19.8, deep in oversold territory, but that hasn't deterred short sellers. Their positions now account for roughly 9% of the free float. Adding to the headwinds, the Federal Reserve's commitment to keeping rates restrictive until inflation durably hits 2% is weighing on growth-tech names across the board.
The fundamental damage, however, is largely self-inflicted by a structural shock in the memory-chip market. Xiaomi president Lu Weibing disclosed that memory prices have quintupled since autumn 2025, while costs for TV-display memory have surged tenfold. The global AI boom is diverting production capacity at suppliers like Samsung and SK Hynix towards high-margin AI chips, starving the smartphone industry of standard DRAM. CEO Lei Jun has warned that the margin squeeze will persist for at least two more years. As a result, Goldman Sachs expects Xiaomi's adjusted net profit for the second quarter to be halved to 5.4 billion yuan, though the bank maintains its Hong Kong-listed stock target of HK$40. Jefferies took a far more bearish stance, downgrading the stock to "Underperform" with a new target of HK$25.49, citing the margin erosion from rising memory costs.
Should investors sell immediately? Or is it worth buying Xiaomi?
Xiaomi's fledgling auto division is compounding the pressure. The EV business posted an operating loss of 3.1 billion yuan in the first quarter, equating to a loss of roughly US$5,600 per vehicle delivered. To hit an annual target of 550,000 cars, the company needs to reach 57,500 monthly deliveries from June onward — a 15% jump from its previous record. Even a multibillion-dollar share buyback program has failed to stem the bleeding.
Into this turbulent environment, Xiaomi launched its Redmi K90 Ultra on Tuesday, a gaming-focused handset priced aggressively at roughly US$440 with a Snapdragon 8 Elite chip and active cooling. On the IoT front, it has introduced two Mijia-branded refrigerators — a 186-liter model for about US$123 and a 216-liter version for around US$138, both operating at a maximum of 36 decibels — along with the Redmi Buds 8 Active earbuds (ANC up to 50 dB, 44-hour total battery) and a cheaper Vitality Edition at roughly 119 yuan with 37 hours of playtime. A graphene eye massager with vibration, heat and Bluetooth is also in the pipeline via the Youpin crowdfunding platform.
All eyes now turn to August 26, when Xiaomi will release its official second-quarter results. Until then, investors have only the monthly EV delivery figures as a near-term fundamental compass. The fresh 52-week low of €2.34, just below the current price, marks the immediate line in the sand. Whether Xiaomi can scale its new IoT products internationally fast enough to offset the margin drag will determine if the stock can find a floor — or if the sell-off has further to run.
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