Xiaomi Shares Plunge Near 52-Week Low as Memory Cost Surge and EV Losses Overshadow New SUV and Software Plans

Xiaomi's stock nears 52-week low as DRAM prices quintuple, margins shrink, and EV division burns $5,600 per car. New SUV and HyperOS 4 aim to reverse momentum.

The gap between Xiaomi’s bold product ambitions and its financial reality has never been wider. While the Chinese tech giant prepares to unveil a rugged outdoor SUV and a ground-up operating system, its stock has tumbled to €2.50, just a whisker above the 52-week trough. The trigger lies thousands of miles away in the United States, where memory-chip behemoth Micron posted record revenue of $41.5 billion and earnings per share of $25.11 — a windfall that spells pain for Xiaomi’s core smartphone business.

DRAM contract prices for smartphones have quintupled, and TV memory costs have multiplied by ten, as Samsung and Micron divert production capacity toward artificial-intelligence data centres. Xiaomi, whose handset lineup leans heavily on low-margin models, is absorbing the blow directly. Jefferies projects a five-percentage-point contraction in margins by 2026. The damage is already visible: adjusted net profit collapsed 43% in the first quarter, even as the company poured nine billion yuan into research and development and expanded its engineering team to more than 26,000 people.

The fledgling electric-vehicle division is compounding the pressure. Xiaomi delivered roughly 150,000 cars in the first five months of the year, but the full-year target of 550,000 units is slipping away. Jefferies has already cut its forecast to 495,000. To hit even that lowered figure, the company would need record monthly deliveries for the rest of 2026. In the first quarter, the EV unit posted an operating loss of 3.1 billion yuan, equivalent to about $5,600 burnt on every car handed over.

A share-buyback programme worth 20 billion Hong Kong dollars, launched at the start of June, has failed to halt the slide. The stock has lost nearly a quarter of its value in the past 30 days, and short sellers now control roughly 9% of the free float. The relative strength index has sunk to 22, deep in oversold territory, with the next chart support standing at €2.51. Any breach there could trigger a wave of stop-loss selling.

Xiaomi is banking on two fresh initiatives to rebuild momentum. In the fourth quarter it will formally introduce “Sky Nomad,” a sub-brand targeting the outdoor lifestyle market. The first model, code-named N90, is a full-size SUV measuring over 5.3 metres long, equipped with a 1.5-litre turbo range extender that pushes the total driving distance beyond 1,500 kilometres. All-wheel drive, air suspension, a roof loft and LiDAR-based driver assistance are on the spec sheet. Expected pricing of up to 450,000 yuan takes aim at domestic premium players Li Auto and Aito. Separately, the company is overhauling its software with HyperOS 4, set for a Chinese launch in July or August 2026 and a global rollout by October. Built on Android 17 without any legacy MIUI code, the system features a liquid-glass interface and deep integration of the MiClaw AI assistant. The European release of the flagship 18 Pro models has been accelerated to late September.

The structural headwind from soaring memory-chip prices will not dissipate quickly. On August 26, Xiaomi releases second-quarter results, which will lay bare the true cost of that pressure on the bottom line. For a stock already trading at the edge of a technical precipice, the numbers can hardly afford to disappoint.