Why Silver North Resources is benefiting from Xiaomi and Broadcom's hunger for silver

Silver North Resources – Well capitalized for the future

Sometimes things just work out. Silver North Resources actually only wanted to secure solid financing for the upcoming exploration season – but what emerged was a small run on the shares. Within a few weeks, the company raised CAD 11.6 million, significantly more than originally planned. Demand was so strong that the placement was even increased several times. For an explorer of this size, this is a strong signal and a clear vote of confidence from the market for the strategy pursued. With this financial basis, management can now hit the ground running. Instead of having to focus on the next round of financing, the team now has planning security for two full years.

It is no coincidence that the money is flowing right now. The last season at the flagship Haldane project has shown that there is considerable potential there. Seven out of eight drill holes encountered the Main Fault structure being sought. This is a very good hit rate, which has greatly improved the understanding of the deposit. The mineralization was traced over 100 m and down to a depth of 150 m, adding a new dimension to the target. The grades are also impressive. A section of over 9 m averaged 428 g/t silver, including a high-grade core zone of over 1,000 g/t. Anyone familiar with the geology of the Keno Hill district knows that grades of this magnitude and thickness confirm that the company is on the right track to identifying structures of comparable potential to those of its successful neighbor, Hecla Mining.

With the fresh capital, Silver North now intends to continue along the path it has chosen. The first step will be an aerial geophysical survey in March to map the structures even more precisely. As soon as the Yukon winter allows, two drilling rigs will be put into operation. The goal is to further delineate the promising Main Fault step by step, while simultaneously tackling the other targets on the extensive concession area. Thanks to its well-filled coffers, the team can react flexibly to new findings and take immediate action. The conditions for a groundbreaking season could hardly be better. The stock is currently trading at CAD 0.285.

Xiaomi – From smartphone manufacturer to automotive group

The Chinese technology giant is undergoing a profound transformation. What seemed unthinkable two years ago is now a reality. Xiaomi has established itself in the electric vehicle market. But its rapid rise is leaving its mark on its core business and on the stock market. With over 410,000 electric vehicles delivered in 2025 alone, Xiaomi has impressively proven that its entry into the automotive industry was no experiment. The YU7 SUV became a bestseller, even outselling Tesla's Model Y in China in January. But the growth curve is flattening. December figures were not matched in the following month, and deliveries of the SU7 sedan are currently on hold due to a facelift. Analysts are also observing shorter waiting times – a possible sign of declining demand in a market characterized by price wars and declining government subsidies.

While electric vehicles dominate the headlines, the foundation is crumbling. In the smartphone segment, which has long been the backbone of the group, Xiaomi is struggling with shrinking margins. Industry observers expect a decline to 8-9% in the coming quarters, weighed down by rising memory chip prices and subdued demand. Yet it is precisely now that clout is needed. The new flagship Series 17 will launch at the end of February with an ambitious premium strategy, but will have to compete against Apple and Samsung in a saturated market.

With an expected price-to-earnings ratio of 17 for the current year, Xiaomi does not appear overpriced, at least at first glance. However, recent forecast adjustments by major institutions show that margins in the automotive business could fall short of expectations. The share price has lost almost half of its value since its high in 2025 and now appears to be stabilizing. The growth fantasy is intact, but the hurdles along the way are real. The quarterly figures at the end of March will show whether the bottom can be reached. The stock is currently trading at EUR 4.01.

Broadcom – Ahead of the quarterly figures

The starting position could hardly be more contradictory. Broadcom boasts an order backlog of over USD 73 billion for the next 18 months and forecasts a 28% increase in revenue for the first quarter. AI revenues are expected to increase to USD 8.2 billion. Nevertheless, the share price has fallen by around 18% since the last figures were released. Investors are faced with the question of whether the setback represents an opportunity to buy or whether fundamental issues are being overlooked.

AI growth comes at a price. Broadcom is increasingly supplying complete systems for hyperscalers such as Google, which is driving up revenue but at the same time weighing on the gross margin percentage. The forecast for the current quarter is 76.9%, a decline from the previous year's figures. Dependence on a few large customers remains a risk, even if they massively increase their investments for 2026. Analysts are also closely watching the impact of increasing competition in the custom chip sector.

The key question on March 4 will be whether Broadcom can meet high expectations not only in terms of revenue but also in terms of profitability. The market still appears to have its doubts here. Investors should take a closer look at how the mix of high-margin software revenues and the high-growth but pressure-laden chip business develops. The upcoming results will show whether the group can translate its strong negotiating position with hyperscalers into sustainable value creation. The share price is currently trading at USD 333.51.

The strategic importance of silver unites the three companies in this value chain. Silver North Resources has proven with its oversubscribed financing that investors recognize the potential to join its successful neighbors in the famous Keno Hill district. Xiaomi is driving the appetite for silver as a technology group, but has to compete with Tesla in the low-margin electric vehicle market, while the high-margin smartphone business is crumbling. Broadcom, on the other hand, shows that while the AI boom is bringing in record revenues, pressure from major customers on margins is making growth come at a high price.