Chinese technology giant Xiaomi moved to shore up investor confidence on Friday, unveiling a stock buyback programme of up to HK$2.5 billion ($321 million) that pushed its shares more than 2% higher in Hong Kong trading.

The move comes at a sensitive moment for the Beijing-based group, which straddles smartphones, electric vehicles and smart home devices, and is facing a convergence of pressures ranging from intensifying competition and rising component costs to lingering concerns about product safety in its young EV business.

While the market welcomed the announcement, the rally only partly reversed a tougher start to the year. Xiaomi’s shares remain down more than 8% year to date, underscoring the depth of investor unease around its near- to medium-term earnings outlook.

In a filing with the Hong Kong Stock Exchange late Thursday, Xiaomi said the buyback would begin on Jan. 23 and be carried out on the open market, subject to prevailing market conditions and regulatory approvals. The company has been an active buyer of its own stock in recent years, including the repurchase of 4 million shares for HK$152 million earlier this month, signaling a consistent effort to provide downside support to its valuation.

Buybacks are often interpreted as a signal that management believes a stock is undervalued or that the balance sheet is strong enough to return capital to shareholders. At the same time, the practice remains controversial. Many believe that repurchases can offer a short-term lift to share prices without addressing underlying operational challenges, while diverting cash that could otherwise be used for investment, hiring or innovation.

For Xiaomi, the buyback appears aimed at reassuring investors as external headwinds mount. Analysts point to a looming memory chip shortage as one of the most immediate risks. As manufacturers prioritize high-margin demand from the artificial intelligence sector, capacity is being diverted away from consumer electronics, pushing up costs for smartphone makers.

“The shortage has caused margin compression for smartphone manufacturers and a number of independent industry forecasters have lowered their outlook for smartphones,” said Dan Baker, a senior equity analyst at Morningstar.

He added that higher component prices are likely to remain a drag on profitability across the sector.

Industry watchers expect the situation to worsen through the year. Ivan Lam, senior analyst at Counterpoint Research, said Chinese original equipment manufacturers are particularly exposed. “2026 is going to be challenging not just for Xiaomi but for many Chinese OEMs as domestic Android players remain most vulnerable to chip shortages,” he said, noting that competition limits their ability to pass higher costs on to consumers.

Beyond smartphones, Xiaomi’s push into electric vehicles has added both opportunity and risk to its investment case. The company’s shares came under pressure last year after reports of accidents involving its vehicles circulated widely on social media, drawing scrutiny to safety standards at a time when the brand is still establishing credibility in the automotive space.

More broadly, Xiaomi is operating in the midst of an aggressive price war in China’s EV market, where established automakers and well-funded startups are slashing prices to defend market share. The resulting margin squeeze has weighed on sentiment across the sector.

Investor disappointment has also centered on the company’s growth targets. Kyna Wong, a China technology analyst at Citi Research, said markets had reacted coolly to Xiaomi’s 550,000-unit vehicle delivery goal for 2026, which some see as conservative given the scale of investment and hype surrounding its automotive ambitions. She added that profitability in the EV unit is likely to face additional pressure as Beijing adjusts subsidy policies in 2026, reducing state support that has helped underpin demand.

Against this backdrop, Xiaomi has been doubling down on longer-term bets designed to reduce its reliance on external suppliers and strengthen its competitive position. A key pillar of that strategy is semiconductors.

Last year, the company committed at least 50 billion yuan over a decade, starting in 2025, to build out an internal chip development capability. The move mirrors efforts by other Chinese tech firms to secure supply chains amid geopolitical tensions and global chip constraints.

Xiaomi is also laying the groundwork for an international expansion of its EV business, following the launch of its premium SU7 Ultra. While overseas growth could diversify revenue and elevate the brand, it also exposes the company to new regulatory regimes, entrenched competitors and higher execution risk.

However, the buyback announcement highlights the delicate balancing act Xiaomi faces. In the short term, it is using financial tools to stabilize its share price and signal confidence. In the longer term, its performance will hinge on how effectively it navigates component shortages, sustains margins in fiercely competitive markets and delivers on ambitious investments in chips and electric vehicles.

What the buyback has done for now is buy Xiaomi some breathing room, but it has not erased the structural challenges clouding its outlook.

Precious metals are on a massive tear right now in January 2026, with silver, platinum, and uranium all posting impressive gains amid tight supply, industrial demand, geopolitical tensions, and broader safe-haven/inflation-hedge flows.

Silver has surged to new all-time highs, recently touching around $99 per ounce with peaks reported as high as $99.38 in some tracking. As of the latest data around January 23, spot prices are hovering near $98-99, up sharply from just weeks ago, it was in the $90s earlier in the month and has gained over 37% in the past month alone, and more than 220% year-over-year.

This parabolic run is driven by explosive investment demand, physical shortages, industrial use (solar, electronics, etc.), and silver breaking free from its historical gold ratio constraints.

Analysts are eyeing $100+ soon, with some longer-term bullish calls even higher. Platinum has also smashed through to new all-time highs, recently reaching levels around $2,680-2,684 per ounce surpassing previous records from 2008.

Current trading is in the $2,600+ range, with strong monthly gains (15%) and yearly performance up massively (177%). Key drivers include persistent supply constraints especially from South Africa, rising demand in automotive catalysts, hydrogen tech, and jewelry, plus rotation into PGMs as investors diversify from gold’s dominance.

Uranium is hitting a local high rather than an absolute all-time, its 2007 peak was ~$148/lb, but it’s climbed to around $86 per pound recently up ~6% monthly and ~17% yearly, marking the highest in about 17 months.

This reflects renewed buying from physical funds, signs of stronger long-term demand (nuclear expansion, data centers/AI power needs), and ongoing supply tightness. It’s not at blow-off levels yet, but the upswing is firming, with some forecasts pointing toward $90-100+ if utilities lock in more term contracts.

This looks like a classic precious/industrial metals bull phase amplified by macro factors (dollar dynamics, potential trade tensions, clean energy push, etc.). Gold is also at records near $4,900+, so the whole complex is participating.

The recent surges in silver hitting ~$99/oz ATH, platinum (breaking to new records around $2,680+/oz), and uranium (reaching local highs near $86/lb, the strongest in ~17-18 months) carry major implications across markets, economies, industries, and investors.

These aren’t isolated moves—they reflect overlapping macro drivers like persistent inflation hedging, geopolitical risks, clean energy transitions, supply constraints, and rotation into “real assets” amid uncertainty in fiat currencies and equities.

Precious metals (silver, platinum) are acting as hedges against ongoing fiscal dominance, high government debt, potential policy shifts (e.g., tariffs or rate pressures), and eroding confidence in traditional assets.

Gold’s parallel run near $4,900+ amplifies this, with the gold-silver ratio compressing sharply to around 50:1 from much higher levels in prior years, signaling silver’s outperformance and a classic bull-market phase where “poorer man’s gold” catches up aggressively.

Weaker real yields, potential U.S. policy volatility, and global tensions e.g., trade frictions, energy security concerns boost these metals. Uranium ties directly into energy independence and nuclear revival amid AI/data center power demands.

These parabolic runs invite sharp corrections—silver and platinum have seen extreme swings recently due to speculative inflows, index rebalancing, and thin liquidity. A “blow-off top” in silver is possible before any pullback.

Silver: Industrial demand (solar PV, electronics, EVs) remains structural and growing, with multi-year supply deficits ~5th consecutive year pushing prices higher. Investment flows are exploding—physical buying, ETFs, and retail stacking are accelerating.

Extreme bullish sentiment could lead to disappointment if expectations some call for $150+ aren’t met quickly; overcrowding might cap upside or trigger profit-taking. Platinum and PGMs: Tightest fundamentals here—persistent deficits from South African supply issues, rising autocatalyst, jewelry and hydrogen demand.

Rollbacks of aggressive EV mandates could sustain internal combustion engine production longer, supporting platinum use over palladium. Many analysts see it as the “top pick” for 2026 relative to silver/gold due to smaller market size and supply fragility—forecasts point to sustained highs or further gains.

Uranium: Not at ATH (2007 peak ~$148), but the firming to $86+ reflects renewed utility contracting, physical fund buying like Sprott expansions removing supply, and structural deficits. Nuclear renaissance drivers: Global reactor builds, AI/energy needs, policy support for baseload clean power.

Miners/ETFs (URA, URNM) surging 25%+ in January alone; could push toward $90-100+ if term markets tighten further. If macro tailwinds persist, these could extend into multi-year upcycles. Miners often leverage metal prices higher (gold miners already +163% in 2025), so uranium/silver/platinum producers could see amplified gains.

High expectations especially silver risk underperformance if volatility spikes or corrections hit. Diversification matters—don’t go all-in on one metal. Physical availability could tighten further. Rotation from gold into silver/platinum/uranium for relative value plays; uranium offers “asymmetric” upside if nuclear demand surprises to the upside.

Overall, this feels like the early-to-mid stages of a precious/industrial metals supercycle, driven by real shortages meeting explosive demand themes. But with such rapid gains, expect choppiness—corrections are healthy and often set up the next leg higher.