The possibility of Xiaomi technology In the era of AI, Xiaomi is expected to become a high-tech enterprise with a market value exceeding trillions of dollars. 1. Paradigm shift in human-computer interaction Human computer interaction has gone through two important stages of development: In the PC era, Microsoft led the way with Windows and Office as the core ecosystems, laying the foundation for computer operating systems. • Mobile Internet era: The rise of Apple and Android camps, iPhone and App Store have changed the way people interact. The third paradigm shift in the future will be intelligent interaction, and AI driven intelligent terminals will become mainstream. At present, there is no absolute top player in this field, and Xiaomi has the opportunity to seize the opportunity of this era's transformation with its extensive layout in the field of intelligent hardware. It can be imagined that any hardware around the user's life is embedded with AI chips, and behind it is AI Agent unified scheduling, interaction is no longer limited to mobile phones. Xiaomi has great potential for development in this scenario. 2. The development trend of AI: software+AI vs. hardware+AI The future development of AI can be roughly divided into two directions: AI+software: OpenAI Google、 Represented by Microsoft, they focus on applications such as large models and intelligent assistants. AI+hardware: Represented by Apple, Tesla, and Xiaomi, AI is deeply integrated into terminal devices to achieve intelligent experiences. Xiaomi has a profound accumulation in hardware, covering multiple fields such as mobile phones, home appliances, smart wearables, and smart homes. Its products are deeply integrated into users' daily lives, with a massive number of user touchpoints, giving it great potential for AI development. On the track of AI+hardware, Xiaomi is expected to overtake Apple and become an industry leader. 3. Product strength: High cost-effective user mindset Xiaomi's core competitiveness lies in product strength, which has been verified in multiple categories: In the field of mobile phones, Xiaomi's domestic market share ranks second. Home appliances and smart homes: Users are increasingly inclined to choose Xiaomi when purchasing appliances due to its high cost-effectiveness and excellent user experience. Overseas markets: Xiaomi's smart home products are currently showing certain development potential in overseas markets, with a focus on good cost-effectiveness and product strength. I think Xiaomi's product strength is great. Nowadays, if you buy electrical appliances from Xiaomi, many times users directly choose the Xiaomi brand. Because its high cost-effectiveness and excellent user experience have deeply penetrated people's hearts. 4. The potential of Xiaomi cars The market feedback for the first model Xiaomi SU7 is good, demonstrating consumers' acceptance of Xiaomi cars. The new YU7 is expected to challenge the market position of Tesla Model Y. Tesla's success lies in its direct sales model and fewer product categories, which sets the company's profitability apart from traditional car companies. And Tesla's future imagination lies in FSD (fully autonomous driving), which is also the core support point for its valuation. Xiaomi has also shown similar potential in car manufacturing, and the market feedback is positive, which means its future growth is worth looking forward to. Overall, Xiaomi's current performance in the market is in line with user expectations and has a continuous upward trend. This will open up a new growth curve for Xiaomi. 5. Valuation space From a long-term development perspective, Xiaomi's valuation logic is mainly based on the following aspects: AI+hardware layout: Xiaomi's extensive coverage in smart hardware gives it a natural advantage in implementing AI. Brand and user base: Xiaomi has a high brand awareness and user loyalty, and its products have strong market penetration. The growth potential of Xiaomi cars: The intelligent electric vehicle business is expected to become a new growth point for Xiaomi in the future. Based on current trends, Xiaomi Technology still has a lot of room for future growth, and the market valuation may have a significant upward potential.