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Xiaomi (OTC:) Corp. has seen its market value increase by $20 billion since June, with its stock rising more than 60% on the tech index. The surge comes as rival Apple Inc. (NASDAQ:). Facing declining sales in China, Xiaomi is expanding into electric vehicles and advanced technologies.
The company’s success is attributed to several factors, including the strong performance of its latest handset series and its strong presence in the overseas market. Xiaomi’s 14 series, which boasts advanced camera technology and the latest Qualcomm (NASDAQ:) Inc. processor, has been enthusiastically welcomed and has achieved more than one 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 also supported by the significant gross merchandise value achieved during the Singles Day event, which reached a “historic high”, and strong third quarter results that have given Xiaomi an edge over rivals Oppo and Vivo.
On Sunday, industry analysts highlighted the potential for further upside for the stock due to Xiaomi’s progress in EVs and AIoT. Additionally, Wall Street firms such as JPMorgan Chase & Co. (NYSE:), Morgan Stanley (NYSE:), and Citigroup predict a boom in China’s smartphone market next year due to innovative local products and a resurgence in consumer demand.
JPMorgan recently upgraded Xiaomi to ‘Overweight’, indicating confidence in the company’s trajectory. The support comes at a time when Huawei Technologies is making headlines with the launch of its Mate 60 Pro, which features a unique camera function, indicating a competitive landscape for smartphone makers in China.
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