Xiaomi shares are experiencing a powerful boost from two significant developments: a bullish analyst report from Goldman Sachs and substantial share purchases by the company’s founder, signaling strong conviction in the technology firm’s strategic direction.
Founder’s Major Investment Signals Undervaluation
Demonstrating personal commitment parallel to institutional optimism, founder Lei Jun has significantly increased his stake. He acquired an additional 2.6 million Class-B shares, a move that market observers interpret as a clear indicator that company leadership considers the stock remains undervalued despite substantial gains throughout 2025. This substantial insider purchase following an already impressive rally year raises questions about whether management anticipates even greater growth ahead.
Electric Vehicle Unit Reaches Profitability Milestone
The fundamental foundation supporting this optimism stems from Xiaomi’s automotive division. During the third quarter of 2025, the electric vehicle business achieved an operating profit of 700 million renminbi, reaching profitability faster than industry benchmarks. This positive performance has prompted upward revisions to delivery targets, with the company now aiming to exceed 400,000 electric vehicles in 2025 instead of the previously projected 350,000 units. Manufacturing operations are running at full capacity, recently celebrating the production milestone of the 500,000th vehicle.
Should investors sell immediately? Or is it worth buying Xiaomi?
Goldman Sachs Highlights AI Integration Potential
Goldman Sachs has reinforced its “Buy” rating with a price target of HK$53.50, citing substantial upside potential driven by Xiaomi’s accelerated artificial intelligence integration. The investment firm’s analysts point to three critical developments:
- MiMo-Embodied AI: Complete open-source release of the AI model designed for autonomous driving and intelligent physical operations
- Hyper Autonomous Driving: Enhanced version of the end-to-end assistance system
- Substantial User Base: 473,000 active users contributing over 300 million kilometers of accumulated driving data
The central question remains whether these AI innovations can significantly advance Xiaomi’s “Human x Car x Home” ecosystem strategy. With both a profitable EV division and aggressive AI initiatives underway, the technology giant appears positioned to pursue growth across multiple fronts simultaneously.
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