Key Points:
- Xiaomi’s stock rose due to new AI model releases and an updated EV launch.
- The company is investing heavily in AI, launching models like MiMo V2 Pro and testing miclaw.
- Goldman Sachs sees Xiaomi as a potential “physical AI leader.”
- Xiaomi is updating its SU7 EV to stay competitive in the growing EV market.
Xiaomi Corp. saw its shares climb on Thursday, fueled by the release of its latest artificial intelligence (AI) models and the upcoming launch of an updated SU7 electric vehicle. The Hong Kong-listed stock jumped as much as 5.8%, outperforming the Hang Seng Tech Index, which dropped over 2% due to disappointing Tencent earnings and escalating tensions in Iran. This AI-driven optimism helps Xiaomi recover from a recent 45% decline, which had been caused by concerns about rising memory prices impacting its profits.
Xiaomi has been actively boosting its AI efforts, aiming to keep pace with the growing interest in agentic AI tools like OpenClaw, especially in China. This week, the company rolled out new models, including MiMo V2 Pro, its own AI system designed for agent-based applications. Earlier this month, Xiaomi also announced it started testing the AI agent “miclaw” for mobile devices. CEO Lei Jun stated that Xiaomi plans to invest over 16 billion yuan ($2.3 billion) in AI research by 2026.
Goldman Sachs analysts, including Timothy Zhao, believe these new model launches will strengthen Xiaomi’s position as a top developer of foundational AI models. While increased research and development spending might affect short-term profits, consistent delivery of results should lead the market to view Xiaomi as a leader in “physical AI” with its own AI, operating system, and chipset capabilities. This could shift the market’s focus from short-term valuations to long-term value creation.
In addition to its AI advancements, Xiaomi is also launching an updated version of its SU7 sedan in Beijing today. This refresh includes improved hardware and safety features, crucial for staying competitive in the crowded electric vehicle (EV) market. The car business is becoming an increasingly important growth engine for Xiaomi, especially as rising component costs cast a shadow over the global smartphone market. Short sellers who benefited from Xiaomi’s recent struggles due to surging memory chip prices might be feeling uneasy after the stock’s recent sharp rise.
