Xiaomi’s Grand Plans Can’t Mask the Memory Cost Bloodbath as Shares Hit Year Low

Xiaomi's stock hits a 52-week low as a €20B buyback fails to offset a 43% profit plunge in smartphones and a 3.1B yuan EV loss, overshadowing its ambitious software and SUV plans.

Xiaomi is pouring billions into a complete software overhaul and a glamping-focused electric SUV, yet the market is punishing the stock with a ruthlessness that suggests none of that matters. The Chinese technology group’s shares touched €2.50 on Thursday, a 2.17% slide that marks a fresh 52-week low and extends the year-to-date collapse to roughly 44%. A €20 billion Hong Kong dollar buyback program launched in early June has done nothing to arrest the decline.

The disconnect between ambition and market reality could hardly be sharper. President Lu Weibing confirmed on the latest earnings call that the company’s next-generation operating system will debut in July or August 2026, built on Android 17 with no legacy MIUI code. Dubbed internally a “zero-legacy” framework, the software — likely called HyperOS 4 or possibly HyperOS 27 — will rebuild core applications in Rust and Flutter and introduce a liquid-glass UI, an interactive lock-screen island, and the MiClaw AI agent integration. The stable China rollout begins in September with the Xiaomi 17 and 15 series, with global devices following four to six weeks later; upwards of 60 handsets are expected to qualify.

But the operating system story is fighting for oxygen against a brutal earnings picture. Adjusted net profit in the smartphone division cratered 43% in the first quarter, a direct consequence of soaring memory chip costs. Xiaomi is absorbing the price shock rather than passing it to consumers: smartphone DRAM has quintupled, TV memory costs have increased tenfold, and the company plans no direct price hikes, hoping instead to offset the pressure through software optimization and product restructuring. Meanwhile, its electric vehicle business burned through an operating loss of 3.1 billion yuan in the first quarter of 2026.

For the stock, that is the dominant narrative. Even the ambitious Sky Nomad sub-brand, targeted at outdoor enthusiasts with the internal-codenamed N90 full-size SUV, has failed to shift market sentiment. The 5.3-metre vehicle features a range-extender system — a 1.5-litre turbocharged engine that charges a large battery while driving, boosting pure electric range from roughly 500 kilometres to over 1,500. With all-wheel drive, air suspension, a rooftop loft, and LiDAR-based driver assistance, the N90 is priced up to 450,000 yuan and will officially launch in the fourth quarter of 2026, taking direct aim at Li Auto and Aito in the premium segment. But with only around 150,000 EVs delivered by the end of May against a full-year target of 550,000, the delivery shortfall is already casting doubt on the company’s execution.

The stock’s bloodletting has left the relative strength index at 22, deep in oversold territory. Short sellers have piled in, holding roughly 9% of the free float. Technical support sits at €2.51; a break below that level would signal further downside. Xiaomi’s next major data point comes from June EV delivery numbers, followed by second-quarter earnings in August. By then, management will need to show that delivery momentum is finally accelerating — otherwise the ambitious software and automotive visions will remain exactly that: visions.