Xiaomi’s shares surged another 6% in Hong Kong trade on Wednesday after Jefferies reiterated its Buy rating on the technology giant, while also touting it as a top pick among its Chinese peers. The shares jumped 5.8% on Tuesday.

Xiaomi rose as much as 4.9% to HK$44.0, vastly outperforming a flat-to-low performance in the Hang Seng. The stock also fared much better than other major Chinese tech stocks.

Jefferies reiterated its recent Buy rating on Xiaomi (OTC:XIACF) with a price target of HK$63.25, which represents an upside of about 44% from current levels.

Jefferies analysts said that investor expectations for Xiaomi were largely positive given its recent success in the electric vehicle market, although some were wary of the company’s ambitious goal to sell 350,000 EVs in 2025.

Jefferies noted that while the stock was popular, several fund managers were yet to buy into the company, amid caution over China exposure amid a bitter U.S.-China trade war.

“We believe global investors seem to be interested in Xiaomi’s unique growth story and ecosystem, but many are wary of getting into Chinese stocks now, given the escalation of US-China tensions,” Jefferies analysts wrote in a note.

Jefferies also noted the potential for Xiaomi’s stock to eventually reflect its artificial intelligence ambitions, although a lack of clarity on this front meant that the stock would not likely reflect this potential soon.

Xiaomi is trading up nearly 37% so far in 2025, having benefited greatly from strong EV sales and increased optimism over China’s tech giants and their AI prospects. The stock had raced to a record high in mid-March, before falling sharply after the company raised $5.5 billion in a share sale.