Xiaomi's Car and AI Business May Face Pressure in Q3, Deutsche Bank Says
Deutsche Bank estimates Xiaomi's smart EV and AI segment revenue fell 4% quarter on quarter in Q3, with R&D costs weighing on adjusted profit.
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what happened
Market Talk, citing Deutsche Bank analyst Bin Wang, reports that Xiaomi's car and AI business likely faced sequential pressure in the third quarter. DB estimates revenue from the smart EV, AI and other new initiatives segment declined 4% quarter on quarter to 23.8 billion yuan, as vehicle deliveries were flat.
On costs, Xiaomi has guided to 2026 corporate R&D expenses of 40 billion yuan, including 16 billion yuan for the smart EV and AI segment. Wang's research note says auto R&D spending may have weighed on Xiaomi's adjusted net profit for the quarter. DB keeps a buy rating with a target price of HK$48.00; shares last traded at HK$28.74.
why it matters
For investors, the key question is how the heavy R&D spending in the auto and AI business will affect the group's profitability in upcoming reports.
tags
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sources
- Xiaomi's Car, AI Business Likely Pressured in 3Q — Market Talk, 3 November 2026 at 02:25 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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