Xiaomi's second-quarter performance largely met market expectations, with revenues surging by 30%. Notably, the AIoT (Artificial Intelligence of Things) segment witnessed a robust 45% growth, surpassing initial forecasts. The impressive sales of electric vehicles compensated for the subdued performance in smartphone sales, resulting in a 75% increase in adjusted net profit. Despite a cumulative 54% rise in share price over the past year, Xiaomi's recent share price performance has broadly mirrored the overall market index. Goldman Sachs anticipates a deceleration in Xiaomi's AIoT business growth and a gradual ramp-up in electric vehicle production capacity. Consequently, the investment bank has marginally adjusted its net profit forecasts for Xiaomi from 2025 to 2027, lowering the target price from HK$69 to HK$65. Nevertheless, Goldman Sachs maintains a "Buy" rating on Xiaomi.