Analyst Outlook on Xiaomi AI Home Appliance Growth
Morgan Stanley has reiterated an Overweight rating on Xiaomi, setting a target price of HK$45 per share, and highlighted the company's strong positioning to benefit from the rapid expansion of China’s AI‑powered home appliance market. The brokerage projects that the overall Chinese AI home appliance market, valued at roughly $123 billion today, will grow to about $150 billion by 2030, driven by higher adoption of connected devices and rising average selling prices.
Xiaomi’s domestic AI home appliance revenue is forecast to exceed RMB200 billion by 2035, with overseas revenue potentially surpassing the same threshold. Central to this bullish outlook is Xiaomi’s integrated ecosystem, which combines smartphones, wearables, televisions, appliances and electric vehicles under the HyperOS platform. The firm’s “Human + Car + Home” strategy is expected to generate synergies across these product lines, strengthening its competitive stance against traditional appliance manufacturers.
The analysts point to Xiaomi’s expansive global user base—over one billion connected devices and a growing monthly active user base—as a key advantage for cross‑selling and deepening customer engagement. Beyond hardware, the report emphasizes that Xiaomi’s ongoing investments in proprietary large language models, AI agents and software are likely to become a more meaningful valuation driver, supporting accelerated earnings growth through 2027 and 2028, enabling premium pricing and improved profitability.
Near‑term concerns about rising memory‑chip costs are deemed manageable. Management has outlined measures such as price increases and product‑mix improvements, and the brokerage expects cost‑pressure relief to materialise in the second half of 2026.