(Bloomberg) — Xiaomi Corp.’s shares surged to a fresh record in Hong Kong on Friday, as new product launches and benefits from China’s nationwide subsidy program burnished the company’s sales outlook.
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The stock has rallied 12% this week, after the company said it will release two new products — a high-end SU7 Ultra vehicle and 15 Ultra phone — by month-end. Its existing smartphones also got a boost from China’s increased consumer subsidies.
HSBC Holdings Plc analyst Frank He raised the forecasts of the company’s smartphone shipments by 2% in 2025, and by 3% for 2026. The subsidy program’s inclusion of wearable devices is another near-term driver for Xiaomi’s growth, he wrote in a note, adding that the company may also benefit from rapidly declining AI costs, triggered by the launch of AI model DeepSeek R-1.
“Given Xiaomi owns one of the most well-established AIoT device platforms worldwide, we are more positive on its growth outlook,” he said.
Chinese tech stocks have surged to the brink of a bull market after Deepseek sparked investor excitement around China’s Internet firms.
Xiaomi’s stock jumped more than 120% in 2024 on a stronger-than-expected performance after launching in China’s EV market, outperforming global peers such as BYD Co. and XPeng Inc. That growth looks set to continue this year, with HSBC expecting a rise in delivery volumes as factory capacity expands.
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