Xiaomi's AI and Hybrid Debuts Fail to Halt Stock's Descent as Profit Slump Deepens

Xiaomi's shares touch €2.76 low after Q1 profit collapse of 43%; new AI platform and EREV SUV approval fail to reverse sentiment amid technical oversold conditions.

A clutch of product milestones — from a new AI platform to regulatory clearance for a hybrid SUV — has done little to arrest Xiaomi's slide. The Chinese tech giant's shares touched a fresh 52-week low of €2.76 on Thursday, while closing near €2.80, as a brutal first-quarter earnings report continued to weigh on sentiment. The disconnect between corporate innovation and market performance has rarely been wider.

The company unveiled MiMo Claw, an AI platform already integrated into Kingsoft Office, claiming token consumption nearly half that of rival systems. A refreshed 17T smartphone series with upgraded Leica cameras also hit the market. Yet these launches were overshadowed by a first-quarter profit collapse: adjusted net income plunged 43% to 6.1 billion yuan, with revenue falling nearly 11% to about 99 billion yuan. Earnings per share halved to 0.18 yuan, and smartphone shipments dropped 19% to 33.8 million units — the steepest decline among the top five global manufacturers.

Beyond handsets, Xiaomi's automotive arm secured a critical regulatory step: China's Ministry of Industry and Information Technology has opened Xiaomi's application for extended-range electric vehicle (EREV) production for public comment, with final approval expected after the comment period ends this week. The first EREV model, codenamed "Kunlun N3," will sit under a new sub-brand called Skynomad. This full-size SUV, over 5.3 meters long, delivers a combined range of roughly 1,500 kilometers (400-500 km on electric alone) and is priced at around 200,000 yuan — undercutting rivals Li Auto and Aito, which typically start above 250,000 yuan. Xiaomi plans four new models for 2026: a revamped SU7 with 902 km range, a SU7 Executive Edition, and two EREV SUVs in five- and seven-seat configurations.

The delivery target of 550,000 vehicles for 2026 represents a 34% jump from 2025, but the current pace looks challenging. From January to May, Xiaomi delivered 150,317 vehicles, a year-on-year gain of just 13.5%. Jefferies downgraded the stock to "Underperform" after the weak quarter, citing fading EV sales, shrinking smartphone margins, and rising component costs. The brokerage slashed its EBIT forecast — first-quarter EBIT collapsed 70% — and set a new price target of HK$25.49, equivalent to about €2.82.

Technically, the stock is deeply oversold. It now trades well below its 50-day moving average of €3.28, and the Relative Strength Index sits at 28, indicating extreme bearish conditions. Since January, Xiaomi shares have lost roughly 38% of their value, and from the June 2025 high of €6.69, more than half the market cap has evaporated. The next major catalyst is second-quarter earnings due on August 26, 2026, when management will need to show that AI features and hybrid models can reverse the revenue slide. Until then, the €2.80 level remains the key resistance for any potential stabilisation.