Xiaomi Corporation: Quietly working on AI

Research evidence excerpt

Xiaomi Corporation: Quietly working on AI

Equity Research

China Technology

27 May 2026

Xiaomi Corporation

Quietly working on AI

Earnings Review1Q results broadly inline with expectations; as the company

goes through some industry-wide headwinds, it is making

rapid progress in AI; we retain our OW and our PT XIACY OVERWEIGHT Unchanged

China Technology POSITIVE

Summary: As expected, the smartphone sales declined significantly yoy due mainly to rapidly Unchanged

rising memory prices. The company took proactive steps to mitigate impact on margins and Price Target USD 30.00

profits. The trade off delivered record high ASPs from mix shift and much better gross margins Unchanged

qoq. The company plans to continue to balance units and margins for the rest of the year. IOT Price (26-May-26) USD 19.30

sales were down meaningfully yoy because of tough comp and cut back in govt subsidies this Potential Upside/Downside +55.4%

year practically. But overseas IOT sales were up double digits now contributing approximately Source: Bloomberg, Barclays Research

40% of segment total. For EVs, after soft Q1 because of product transition, co is expecting a

strong qoq growth in q2 with flattish vehicle gross margins, which are near industry highs Market Cap (USD mn) 99736

globally. As Xiaomi continues to deliver solid results against some industry-wide headwind, we Shares Outstanding (mn) 5167.68

are impressed by the rapid progress the company has made in advancing its foundational Free Float (%) N/A

models and its MiClaw AI agent, despite a somewhat late start in its chase of the AI dream. Its 52 Wk Avg Daily Volume (mn) 0.5

foundational models are among top ranked in the world, according to several industry Dividend Yield (%) N/A

benchmarks.