Morgan Stanley: Xiaomi Elevates AI to Strategic Priority, Sets Target Price at HKD 45 with 'Overweight' Rating

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On April 28, Morgan Stanley released a research report indicating that Xiaomi Group’s management has demonstrated a strong commitment to artificial intelligence (AI), elevating it to a strategic priority for the group. The report states that the group’s foundational model has performed very well since its launch, and the company’s strategy is to leverage AI to reshape its entire ecosystem of vehicles, homes, and personal devices. Morgan Stanley mentioned that Xiaomi plans to introduce new electric vehicles (EVs), new system-on-chip (SoC) solutions, and new AI models in the future, while continuing to develop its overseas network. Regarding its smartphone business, Xiaomi faces the main challenge of rising memory costs, and management will take proactive measures such as optimizing product design to strive to become a winner across cycles. Morgan Stanley sets a target price of HKD 45 for Xiaomi, with an ‘Overweight’ rating, and considers the group a preferred stock.

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