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Xiaomi Turns to Buybacks to Steady Shares as Chip Shortages, EV Price Wars Weigh on Outlook

By
Samuel Nwite
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0

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 Especially Silver and Gold Are Experiencing Massive Rally in January

By
Paul Ugbede Godwin
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0

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.

Jamie Dimon Warns AI Could Trigger Civil Unrest Without Safety Nets as Huang Sees Job Boom in Global Buildout

By
Samuel Nwite
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0
JP Morgan Chase puts contents through its CEO account, it goes viral. But the same content via JPMC account, no one cares (WSJ)

Jamie Dimon has issued one of the clearest warnings yet from a top Wall Street executive about the social risks of artificial intelligence, arguing that the technology could move faster than societies can absorb, with destabilizing consequences unless governments and companies act together to protect displaced workers.

His warning in Davos landed at a moment when enthusiasm about artificial intelligence is colliding with anxiety about its social consequences, and his remarks captured the unease felt well beyond Wall Street boardrooms.

The JPMorgan Chase chief executive framed AI as both inevitable and transformative, but also as a force that could strain the social fabric if its rollout is driven purely by efficiency and competitive pressure. In Dimon’s telling, the danger is not the technology itself, but the speed at which it is being deployed relative to society’s capacity to absorb disruption.

“Your competitors are going to use it and countries are going to use it,” he said. “However, it may go too fast for society and if it goes too fast for society that’s where governments and businesses [need to] in a collaborative way step in together and come up with a way to retrain people and move it over time.”

AI, he said, promises sweeping gains: faster economic growth, dramatic productivity improvements, and breakthroughs in medicine that could change how diseases are diagnosed and treated. Yet those gains come with a cost that markets alone cannot manage. If millions of workers are displaced faster than they can be retrained or absorbed into new roles, the political and social consequences could be severe.

Dimon made clear that large employers like JPMorgan are already planning for a future with fewer staff as AI automates tasks across finance, operations, and customer service. That acknowledgement matters because it strips away the idea that job losses are speculative or confined to low-skilled work. In banking, law, consulting, and technology, AI systems are increasingly capable of performing tasks once handled by well-paid professionals.

His call for governments and businesses to act “in a collaborative way” reflects a view that the private sector cannot simply adopt AI and leave the fallout to public authorities. Wage support, retraining programmes, relocation assistance, and early retirement options, he argued, may all be needed to smooth the transition.

These are not abstract policy ideas but tools that were widely used in past industrial shifts, from the decline of heavy manufacturing to the restructuring of coal and steel industries.

The example of US truck drivers was particularly telling. Long-haul trucking has been a source of stable, high-paying work for decades, often supporting entire communities. Autonomous driving technology threatens to upend that model. Dimon’s warning was blunt: a sudden collapse in incomes on that scale would not just hurt individuals, it would destabilize communities and fuel unrest. Phasing in automation, even if it slows short-term efficiency gains, could be the difference between orderly adjustment and social backlash.

“Should you do it all at once, if 2 million people go from driving a truck and making $150,000 a year to a next job [that] might be $25,000? No. You will have civil unrest. So phase it in,” Dimon said.

“If we have to do that to save society … Society will have more production, we are going to cure a lot of cancers, you’re not going to slow it down. How do you have plans in place if it does something terrible?”

Underlying Dimon’s remarks is a broader concern about political legitimacy. If large sections of the population feel that technological progress benefits only companies and investors, public trust in institutions could erode further. His reference to “saving society” was not a rhetorical flourish but a recognition that economic dislocation has historically fed populism, anger, and political volatility.

That concern spilled into his comments on geopolitics and immigration. On Europe, Dimon struck a careful balance, acknowledging Washington’s desire to push allies to take more responsibility for their own security while warning against approaches that risk fragmentation. His emphasis on persuasion rather than coercion echoed his broader theme: pressure without consent can provoke resistance rather than reform.

On immigration, Dimon’s remarks revealed discomfort with the tone and optics of enforcement under President Donald Trump. While supporting the removal of criminals, he called for transparency and restraint, stressing the economic reality that migrants underpin key sectors of the US economy. Healthcare systems, farms, and hospitality businesses, he said, rely heavily on migrant labor, and treating those workers as disposable undermines both economic performance and social cohesion.

“I don’t like what I’m seeing with five grown men beating up little women,” Dimon said, referring to scenes of violence involving Immigration and Customs Enforcement (ICE) officers.

Rounding up criminals was one thing, Dimon added, but he would like to see data showing who had been rounded up and whether they had broken the law.

Set against Dimon’s caution was a more optimistic narrative from Nvidia chief executive Jensen Huang, who argued that fears of mass unemployment risk missing the bigger picture. From his perspective, AI is triggering an unprecedented wave of investment in physical infrastructure: power generation, semiconductor fabrication, data centers, and networks. Each of these requires large numbers of skilled workers, many in trades that have struggled to attract talent in recent years.

“This is the largest infrastructure buildout in human history, this is going to create a lot of jobs,” he said.

Huang’s emphasis on plumbers, electricians, construction workers, and technicians reframed the AI boom as an industrial story rather than a purely digital one. In regions hosting new chip plants or data centers, demand for these skills is already driving wages higher, suggesting that AI could tighten labor markets rather than hollow them out, at least in certain sectors.

His argument also carried a geopolitical edge. By highlighting robotics as a “once-in-a-generation” opportunity for Europe, Huang pointed to a path that plays to the region’s strengths in advanced manufacturing. Rather than chasing US-style software dominance, Europe could integrate AI into factories, logistics, and industrial processes, potentially reshaping global supply chains.

“This is your opportunity to now leap past the era of software,” he argued, an area where Silicon Valley has long outperformed Europe.

Taken together, the Davos exchanges underscored a central tension in the AI debate. On one side is the race to deploy powerful technologies in order to stay competitive, boost growth, and secure geopolitical advantage. On the other is the risk that societies move too slowly to adapt, leaving workers and communities exposed.

Dimon’s message was not to slow innovation, but to plan for its consequences with the same seriousness that companies apply to capital investment or risk management. Huang’s optimism, meanwhile, suggested that AI could generate new forms of work on a scale that offsets displacement, provided governments and businesses invest in skills and infrastructure.

The gap between those two visions may ultimately determine whether AI deepens existing inequalities or becomes a broadly shared engine of prosperity. What Davos made clear is that the debate has moved beyond technology and into the realm of social contracts, labor markets, and political stability.

Global Regulators Align as Crypto Transforms From Asset Class to Monetary Infrastructure

By
Ojukwu Emmanuel
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0

Global crypto regulation is entering a phase of convergence, with policymakers across jurisdictions increasingly aligned on core principles, regulatory objectives, and high-level frameworks for digital assets.

In the 4th edition of its Global Crypto Regulation Report 2026, PwC highlights a pivotal shift: crypto assets are moving decisively into the heart of the monetary system. According to the firm, digital assets are no longer confined to trading and speculative markets, they are now being actively used to move, settle, and manage money.

Crypto assets are increasingly performing monetary functions that were once the exclusive preserve of banks and traditional payment networks. Banks, asset managers, payment providers, and large corporates are now embedding digital assets directly into core infrastructure, balance sheets, and operating models. PwC notes that this evolution is no longer optional or peripheral, but structural.

Matt Blumenfeld, Global/US Digital Assets Lead at PwC US, emphasizes that regulatory momentum is now being driven by market realities rather than abstract policy debates.

“Regulation of crypto is no longer shaped from the outside. It is being pulled into place by market reality”, he said.

Regulators are increasingly clarifying pathways for digital assets to qualify as eligible collateral for margining and risk mitigation, including under uncleared margin rules. Recent regulatory changes and supervisory guidance are making approvals more feasible where assets meet standards for liquidation, valuation, custody, operational resilience, and enforceability.

This is laying the foundation for broader institutional adoption of tokenized assets and select cryptocurrencies in collateral management and derivatives markets.

Stablecoins: From Design to Market Architecture

PwC observes that the global regulatory approach to stablecoins has shifted decisively from design to implementation. Across major jurisdictions, there is a growing consensus on foundational regulatory principles, including full reserve backing, redemption at par, segregation of customer assets, and strong Anti-Money Laundering and Counter-Financing of Terrorism controls.

Rather than mandating state-only solutions, regulation is increasingly legitimizing private stablecoins. This approach enables “co-opetition” between banks and fintechs, fostering shared infrastructure and public-private cooperation while preserving long-term competition over specialization, user experience, and network control.

According to PwC, regulatory clarity is transforming stablecoins from a policy experiment into core financial market infrastructure. Frameworks such as MiCAR in Europe, MAS regulations in Singapore, and forthcoming US rules now define what a regulated stablecoin looks like and how it can operate within existing financial systems.

This clarity provides banks and non-bank issuers with the legal certainty required to innovate within the regulatory perimeter. Because no single institution can dominate the stablecoin market, collaboration has become a key driver of competition.

Banks, payment firms, and exchanges are increasingly working together on shared settlement rails and tokenized deposit networks to achieve liquidity and adoption at scale.

The Dollar as a Network, Not Just a Reserve Asset

PwC also underscores the growing geopolitical and monetary implications of stablecoins. Dollar-backed stablecoins are reshaping how the US dollar functions as the world’s reserve currency.

By enabling individuals and businesses, particularly in emerging markets to hold and transfer dollar value without direct access to US banks, stablecoins are turning the dollar into a digital reserve network.

For populations facing currency volatility or limited banking access, stablecoin wallets increasingly function as de facto digital dollar accounts. This technological expansion is reinforcing dollar dominance through infrastructure rather than policy.

Laura Talvitie, Digital Assets Regulatory Lead at PwC UK, warns that regulatory inaction carries strategic risks:

“With over USD 300 billion in stablecoins in circulation and more than 99 percent pegged fo the US dollar, many jurisdictions risk becoming spectators in a market they should help shape. The challenge is no longer whether to regulate, but how leading financial centres create the conditions for non-dollar stablecoins and tokenized money to scale safely and competitively, or risk the next wave of digital finance being driven from a small number of global hubs”, she said.

Outlook

As digital assets become embedded within mainstream financial infrastructure, jurisdictions that provide clear, balanced, and innovation-friendly regulatory frameworks are likely to emerge as global hubs for tokenized finance.

Stablecoins in particular, are poised to play a central role in cross-border payments, collateral management, and financial inclusion. However, the dominance of dollar-pegged stablecoins also raises strategic questions for other currencies and financial centers.

Andela Acquires Woven to Redefine Technical Hiring in The Age of AI

By
Ojukwu Emmanuel
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0

Andela, one of the world’s largest tech talent marketplaces, has acquired Woven, a human-powered technical assessment platform designed to simulate real engineering work and future-proof hiring in the age of AI.

The acquisition marks a major step in Andela’s evolving AI-native talent strategy, strengthening its ability to assess, upskill, and deploy enterprise-ready engineering teams globally.

The company noted that the deal builds on its strong foundation in technical assessments and learning, positioning it to better evaluate both engineering fundamentals and AI fluency at scale.

Speaking on the acquisition, Carrol Chang, CEO of Andela said,

“To power the AI ecosystem at scale, the world needs AI-native, enterprise-ready engineering talent en masse. Andela plus Woven equals the best technical assessment engine in the world to ensure AI fluency and real-world job success.”

Echoing this view, Barun Singh, Chief Product and Technology Officer at Andela, explained that Woven allows Andela to leapfrog traditional hiring tests by applying scenario-based assessments that closely mirror real engineering work. From day one, these scenarios will be used across Andela’s talent network to benchmark skills more accurately and ensure stronger matches between talent and client needs.

Founded with the mission to eliminate the gap between talent and opportunity, Woven brings significant strategic value to Andela.

Through the acquisition, Andela gains the following:

  • A comprehensive library of best-in-class, real-world engineering scenarios aligned to specific job functions, alongside AI-assisted generation of new scenarios

  • AI-driven scoring systems that deliver accurate, consistent, and scalable evaluations based on proven assessment rubrics refined over years of performance data

  • Deep expertise from Woven’s founding team to accelerate Andela’s long-term assessments roadmap

This acquisition builds on Andela’s earlier investments in AI-driven talent infrastructure, including the launch of Andela Talent Cloud in October 2023. As part of the deal, Woven’s founder and CEO, Wes Winham Winler, will join Andela to lead the development of next-generation assessments aimed at predicting success in AI-assisted software development and AI system creation.

Founded in 2014 by Jeremy Johnson, Iyinoluwa Aboyeji, Nadayar Enegesi, Brice Nkengsa, Ian Carnevale, and Christina Sass, Andela has grown from a single hub in Lagos, Nigeria into a remote-first global marketplace spanning more than 135 countries. The company has played a pivotal role in nurturing tech ecosystems in underserved regions such as Africa and Latin America, connecting technologists to long-term international opportunities and competitive compensation.

In 2021, Andela reached unicorn status, achieving a valuation of $1.5 billion following a $200 million Series E funding round led by SoftBank, with participation from Whale Rock, Generation Investment Management, and the Chan Zuckerberg Initiative.

At its core, Andela exists to ensure technologists have equal access to opportunity regardless of location. Its model enables companies to build diverse, distributed teams faster and more cost-effectively, while empowering skilled professionals in emerging markets to work with the world’s leading brands.

Outlook

With the acquisition of Woven, Andela is positioning itself at the forefront of AI-era hiring, where traditional coding tests are no longer sufficient. As AI becomes deeply embedded in software development, demand will continue to rise for engineers who can collaborate effectively with AI systems, not just write code.

By combining AI-driven assessments, real-world simulations, and a globally distributed talent pool, Andela is likely to strengthen its appeal to large enterprises seeking reliable, scalable, and future-ready engineering teams.

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