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Xiaomi stock surges amid Apple's China slump and EV moves

EditorAmbhini Aishwarya
Published 11/13/2023, 05:12 AM
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Xiaomi (OTC:XIACF) Corp. has seen its market value increase by $20 billion since June, with its stock soaring over 60% on the Hang Seng Tech Index. The surge comes as rival Apple Inc (NASDAQ:AAPL). faces a sales downturn in China and as Xiaomi expands into electric vehicles and advanced technologies.

The company's success is attributed to multiple factors, including the strong performance of its latest handset series and its robust overseas market presence. Xiaomi's 14 series, which boasts advanced camera technology and is powered by the latest Qualcomm (NASDAQ:QCOM) Inc. processor, has been met with enthusiasm, securing over a million orders.

Xiaomi's strategic expansion into electric vehicles (EV) and Artificial Intelligence of Things (AIoT) has also contributed to its recent stock appreciation. The positive momentum is further supported by a significant gross merchandise value reached during the Singles' Day event, which hit a "historical high," and strong third-quarter results that have given Xiaomi an edge over competitors Oppo and Vivo.

On Sunday, industry analysts highlighted the potential for further stock gains driven by Xiaomi's progress in EVs and AIoT. Additionally, Wall Street firms such as JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley, and Citigroup forecast a rebound in China's smartphone market next year, spurred by innovative local products and a resurgence in consumer demand.

JPMorgan recently upgraded Xiaomi to 'Overweight,' indicating confidence in the company's trajectory. This endorsement comes at a time when Huawei Technologies is also making headlines with the launch of its Mate 60 Pro featuring a unique camera function, signaling a competitive landscape for smartphone manufacturers in China.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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