Xiaomi stock has pulled back in the past few days, erasing some of the gains made in July. It dropped to H$26.40 in Hong Kong, down by 18% from its highest level in June. This sell-off continued even after the company announced strong vehicle deliveries numbers. It recently formed a shooting star candle on the weekly chart, pointing to more downside ahead of its earnings.
Xiaomi stock falls despite strong vehicle deliveries
Xiaomi, the top Chinese technology company, announced strong vehicle delivery numbers earlier this month. It delivered over 30,000 vehicles in in July, making it one of the biggest and fastest-growing EV companies in China.
It was the fourth consecutive month in which the company delivered over 30k vehicles a month. It delivered 185k vehicles in the first half of the year, up by 17.18% YoY.
The company hopes to boost these deliveries this year by launchig more vehicles. It recently launched the SkyNomad vehicle, a huge SUV that starts selling between $38,000 and $44,000. Recent data shows that the vehicle has already received over 100,000 reservations.
Despite this progress, Xiaomi stock has dropped, mirroring the performance of other Chinese EV stocks. Nio stockhas plunged despite its strong revenue and delivery growth. Other Chinese EV stocks like XPeng and Li Auto have been in a strong downward trend as well.
Xiaomi is being affected by the rising memory prices
Meanwhile, the company’s smartphone business is facing substantial challenges as memory prices surge. A recent report by Omdia showed that the global smartphone market dropped in the second quarter, while Apple and Samsung jumped.
Xiaomi maintained the third share of the smartphone market with a 11% share. Its share was 15% a year earlier. In contrast, Samsung’s share rose to 22% from 20%, while Apple’s jumped from 16% to 20%.
The same metrics were visible in Xiaomi’s earnings report. These results showed that its revenue dropped to 99.1 billion RMB from 111.2 billion RMB a year year. Similarly, the profit before tax (PBT) plunged from 13.1 billion RMB to 5.7 billion RMB in the same period.
Xiaomi’s two segments dropped during the period. Its smartphone and AIoT revenue dropped to RMB 79.2 billion from 92.7 billion, while the smart EV, AI, and other initiatives fell to RMB 19.8 billion.
Unfortunately, the challenges that Xiaomi experienced in the first quarter still remain. Memory and chip prices continue soaring. Just recently, Qualcomm, a top supplier, announced that it would increase the prices of its chips. Similarly, companies like SK Hynix, Samsung Electronics, and Micron have all boosted their memory prices.
Xiaomi share price technical analysis as shooting star pattern
Xiaomi stock chart | Source: TradingView
The weekly chart shows that the Xiaomi share price has dropped sharply in the past few years. It has dropped from a high of H$61.55 in June 2025 to the current H$26.18.
The stock formed a shooting star pattern last week. This pattern is made up of a small body and an upper shadow.
Xiaomi has also formed a mini death cross pattern as the 50 and 100 Exponential Moving Averages (EMA) crossed each other. Therefore, there is a likelihood that the stock will drop further in the near term, potentially to the key support level of H$21.4, its lowest level in June. A drop below that level will point to more downside.
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