Can Xiaomi (XIACF) Overcome Safety and Production Issues in Its EV Business?

Xiaomi Corp. (OTC:XIACF) is among the most fantastic stocks every investor should pay attention to. On November 4, analysts from CLSA reaffirmed their “Buy” rating on the stock with a price target of HK$69.00, which equates to approximately $8.87 as of November 7 and a 63% upside potential.

Just three days before CLSA, on November 1, analysts from Goldman lowered their price target on Xiaomi Corp. (OTC:XIACF) to HK$56.50 ($7.26) from around HK$66.00 ($8.48) earlier. Among other reasons for the target cut, the analysts argued that the rising prices of memory semiconductors will lead to margin pressure for the company, as reported by Bloomberg. The company is expected to report a 23% year-over-year growth in revenue, according to the Bloomberg consensus, when it reports Q3 2025 earnings on November 18.

Can Xiaomi (XIACF) Overcome Safety and Production Issues in Its EV Business?

However, the weakness in the electric vehicle business appears to be overshadowing the company’s near-term outlook. A November 6 Bloomberg report highlighted that Goldman Sachs Group had noticed an increasing number of bearish bets on Xiaomi Corp. (OTC:XIACF), with caution being led by pension and hedge funds.

According to the feedback Goldman received from hedge funds, market sentiment has turned cautious amid ongoing safety concerns, production delays, and weaker-than-expected demand for its electric vehicles despite recent promotional efforts. They further indicated that Xiaomi is “a consensus short/sell at least in the short term due to a lack of catalysts”.

That said, the company remains a strong Buy, with a consensus 12-month median price target indicating 55% potential upside, based on data compiled by TipRanks.

Xiaomi Corp. (OTC:XIACF) is a consumer technology company known for its smartphones, smart home devices, and broader IoT products. The company has also expanded into electric vehicles in recent years.

While we acknowledge the risk and potential of XIACF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XIACF and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.