Daiwa Securities (Daiwa/Morgan Stanley)?: Xiaomi elevates AI to a strategic priority for the group, assigning it a target price of HKD 45 and an “Overweight” rating

Golden Finance reported that on April 28, Morgan Stanley issued a research report saying that Xiaomi Group management has demonstrated a strong commitment to artificial intelligence (AI), raising AI as a strategic priority for the group. The firm said that the group’s foundational model performed very well after its launch, and the company’s strategy is to use AI to reshape its entire automotive and home ecosystem. The firm noted that Xiaomi plans to roll out new electric vehicles (EV), a new system-on-chip (SoC), and new AI models in the future, and will continue to develop its overseas network. For the smartphone business, Xiaomi’s main challenge is rising memory costs. Management will take proactive measures such as optimizing product design, aiming to become a winner across cycles. Morgan Stanley set a target price for Xiaomi of 45 HKD, with a rating of “Overweight,” and views the group as a preferred stock. (Dongxin She)