On February 7, 2025, Xiaomi Group's share price soared strongly, reaching an intraday high of HK$43.05 per share, with a total market value of more than HK$1 trillion, and then continued to rise, exceeding 1 trillion yuan before press time. This milestone not only demonstrates Xiaomi's outstanding strength in diversified business areas such as smart hardware, Internet services and new energy vehicles, but also marks its success among the top 100 clubs in the world by market capitalization. From multiple perspectives such as historical review, multiple collaborations, technological innovation, market environment and future prospects, China Exportsemi will conduct an in-depth analysis of the key factors and significance of Xiaomi Group's market value exceeding one trillion yuan, and strive to provide forward-looking interpretation for readers in the industry.
1. The strong momentum of historical accumulation and soaring market capitalization
Since its establishment in 2010, Xiaomi Group has risen rapidly with cost-effective smartphones and a constantly improving software ecosystem. In recent years, Xiaomi has continued to expand its business scope, gradually deploying in the fields of smart hardware, AIoT ecosystem, new energy vehicles, and financial technology, building a comprehensive technology empire across multiple market segments. In 2024, Xiaomi's share price has been soaring, and its market value growth momentum is extremely strong, and since entering 2025, its stock price has risen by more than 20%, and finally achieved the goal of exceeding 1 trillion yuan in market value. This achievement not only proves the market competitiveness of Xiaomi's brand and products, but also reflects the synergy effect of the company's diversified strategic layout and the successful implementation of its long-term strategic plan.
Figure: Xiaomi Group's market value exceeds one trillion! Ranked among the top 100 clubs in the world
2. Diversification strategy and business synergies
2.1 Steady growth in the smartphone business
As the core business of Xiaomi Group, the global shipment of smartphones is expected to reach 170 million units in 2024, a year-on-year increase of about 16%. In the highly competitive low-end market, Xiaomi continues to optimize the user experience with continuous technological innovation and product iteration. Especially in the high-end market, Xiaomi's sales of high-end models soared by 43%, demonstrating its strategic effectiveness in brand upgrading and product differentiation. The stable mobile phone business not only brought considerable revenue to the company, but also provided strong support for the development of other ecological businesses.
2.2 Explosive growth of the AIoT ecosystem
Xiaomi is committed to building an open and connected smart ecosystem, and its AIoT platform has accumulated 860 million connected devices, covering more than 200 categories, with a smart home market share of 25%. With the full-scenario interconnection capability of the surging OS, the platform has achieved an average of more than 40 million device interconnection operations per day, which greatly improves user stickiness and brand adhesion effect. The diversified product ecosystem and efficient intelligent interconnection not only optimize the lifestyle of consumers, but also provide a solid foundation for the long-term market value growth of Xiaomi Group.
2.3 The rise of the new energy vehicle business
As a new business growth engine, Xiaomi Auto has achieved more than 135,000 deliveries in 2024, meeting its annual target ahead of schedule. Through the cutting-edge technology layout in the field of smart electric vehicles, covering key links such as lidar, intelligent driving, and Internet of Vehicles, Xiaomi Auto has gradually established a complete new retail and service system, laying the foundation for the expansion of market share in the future. As an important outlet for global change, the rapid growth and technological progress of new energy vehicles will undoubtedly bring greater profit space to Xiaomi Group.
3. Technological innovation and R&D investment provide support for market value growth
3.1 The application of AI large models promotes the upgrade of user experience
Xiaomi continues to increase research and development in the field of artificial intelligence, and has launched a 1.3 billion parameter large model on the mobile phone to support multiple rounds of dialogue and image generation of "Xiao Ai". The performance of this model is comparable to that of the 6 billion parameter model in the cloud, resulting in a significant improvement in end-user interaction and a consequent increase in user activity by about 25%. This innovation not only enhances the competitiveness of products, but also builds a solid technical foundation for smart services within the Xiaomi ecosystem.
3.2 Breakthroughs in intelligent electric vehicles and autonomous driving technology
In terms of intelligent driving, Xiaomi Auto has invested a lot of resources in the fields of lidar, sensor fusion, and autonomous driving algorithms, and the end-to-end intelligent driving mileage has exceeded 100 million kilometers, and it is expected that the urban NOA (urban automatic driving assistance system) will cover 100 cities by the end of the year. These data fully show Xiaomi's R&D achievements in the field of autonomous driving and intelligent travel, and provide strong support for it to win the first opportunity in the future new energy vehicle market.
Fourth, a good market environment and investor confidence
4.1 The technology sector of Hong Kong stocks strengthened overall
In 2024, the overall performance of the Hong Kong stock technology sector is eye-catching, with the Hang Seng Technology Index rising 51.05%, providing solid market support for Xiaomi's share price. The excellent industry performance and stable growth expectations have led to the continuous increase in investor confidence. According to the data, as of January 2025, Xiaomi shares accounted for as much as 16% of the southbound funds entered through the Hong Kong Stock Connect, which fully reflects the market's high recognition of Xiaomi's long-term growth and market value growth prospects.
4.2 Investors are optimistic about the long term, and the diversified business layout is favored by the market
Judging from a number of key indicators, Xiaomi Group's competitive advantage in the global market is becoming increasingly prominent. The coordinated development of smartphones, AIoT ecosystems, and new energy vehicles not only provides a diversified source of revenue for the company, but also diversifies the risk of a single market. Investors' optimistic expectations for Xiaomi's future development and continuous increase in R&D investment have further promoted the steady rise of the company's market value.
5. Future prospects and potential challenges
5.1 Transformation and upgrading and the enhancement of global competitiveness
Xiaomi's market capitalization exceeded one trillion Hong Kong dollars, marking its successful transformation from a traditional mobile phone manufacturer to a global technology giant. In the future, with the expansion of the car-making business, the deepening of AI technology, and the improvement of the intelligent ecosystem, Xiaomi is expected to continue to maintain its leading position in the field of smart hardware and digital services, and further improve its global market value ranking. At the same time, continuous technological innovation and international layout will open up a broader market space for the company.
5.2 Challenges and Risk Management
Despite the bright future, Xiaomi still faces challenges such as intensified competition in the new energy vehicle market, uncertainty in the global supply chain, and pressure on investment in technology research and development. Especially in the high-end market competition, how to balance cost control and technological innovation will be the key to Xiaomi's sustainable growth. In addition, the complex environment of the international market also requires the company to continuously strengthen risk management and strategic adjustment to ensure stable development on a global scale.
6. Conclusion
Xiaomi Group's market capitalization exceeded 1 trillion yuan and successfully ranked among the top 100 companies in the world, which is the result of its diversification strategy, continuous technological innovation and strong market execution. From smartphones to AIoT ecosystems, and then to the successful layout of new energy vehicles, Xiaomi is gradually realizing a magnificent transformation from a "hardware manufacturer" to a global technology ecosystem builder with a full range of products and services. Looking ahead, as the global technology industry continues to evolve, Xiaomi will continue to leverage its innovative advantages in global competition, promote industrial upgrading, and win more voice for Chinese technology companies on the international stage.
This historic breakthrough is not only a victory for Xiaomi itself, but also an important symbol of China's scientific and technological progress. In the face of the volatile market environment in the future, Xiaomi needs to continue to focus on core technology research and development, improve its ecological layout, and actively respond to potential challenges to ensure that it maintains its leading position in the ranks of global technology giants. As expected by the market, Xiaomi's milestone achievement will inject new vitality into the global semiconductor and intelligent manufacturing field and create a new era of industrial transformation and upgrading.
