Xiaomi shares surge on AI push, SU7 EV update

The Hong Kong-listed stock rose as much as 5.8%, making it the top performer on the Hang Seng Tech Index, which declined more than 2% amid disappointing earnings from Tencent Holdings and escalating tensions linked to the Iran war, News.Az reports, citing Bloomberg.

The rally extends a recent rebound in Xiaomi’s shares following a sharp 45% drop driven by concerns over rising memory chip costs and their impact on profitability.

Xiaomi has intensified its focus on artificial intelligence to keep pace with growing interest in agentic AI tools such as OpenClaw in China. This week, the company introduced new models including MiMo V2 Pro, an in-house AI system designed for agent-based applications. Earlier in the month, it also began testing its AI agent miclaw for mobile devices. CEO Lei Jun said Xiaomi plans to invest more than 16 billion yuan ($2.3 billion) in AI research in 2026.

Analysts at Goldman Sachs said the new launches could strengthen Xiaomi’s standing as a leading developer of foundational AI models. While increased research spending may weigh on short-term profits, consistent results could shift investor focus toward long-term value, positioning Xiaomi as a leader in physical AI with its own AI systems, operating software and chip capabilities.

The Beijing-based company is also set to unveil an upgraded version of its SU7 sedan in Beijing, featuring improvements in hardware and safety to stay competitive in the crowded electric vehicle market. The EV business is becoming an increasingly important growth driver for Xiaomi, especially as higher component costs pressure the global smartphone sector.

Meanwhile, investors betting against Xiaomi may be reassessing their positions after the recent rally. Short interest stands at about 7.3% of free float, up from 2% in late September, according to data from S3 Partners.