Xiaomi, Silver North Resources, Super Micro Computer: Who suffers and who benefits from the structural silver shortage?

Xiaomi – Silver costs, EV boom and strategic partnerships

As a global electronics manufacturer, Xiaomi is heavily dependent on silver. The metal is found in smartphones (40–60 mg per device), household appliances, and electric vehicle components – especially in sensitive components such as circuit boards and sensors. The price of silver climbed significantly in 2025, driven by demand from electromobility and renewable energies. For Xiaomi, this means noticeable increases in material costs. Suppliers such as Murata and TDK have already passed on price increases of up to 20%. As the electronics market is highly competitive, Xiaomi can only pass on these costs to customers to a limited extent, which is a potential brake on margins.

Xiaomi's electric vehicle division is delivering impressive figures. The YU7 SUV model received 289,000 pre-orders within an hour, with deliveries scheduled to begin in July 2025. 160,000 vehicles were already delivered in the first half of the year. The segment is growing rapidly. It already contributed 17% to consolidated revenue in the first quarter and achieved a gross margin of 23.5%. At the same time, the core business remains robust. Xiaomi ranks third in the global smartphone market, with a share of around 14%, and dominates the Chinese market with a market share of 18.8%. The IoT segment recently experienced a 59% growth, driven primarily by air conditioners and refrigerators.

Xiaomi is focusing on key partnerships to strengthen its technology and economies of scale. The Company is cooperating with BYD on batteries and smartphone components. The CEOs of both companies recently visited a Xiaomi factory together, fueling speculation about deeper collaboration. Xiaomi is also working with NVIDIA on AI solutions for autonomous driving, a critical field following a fatal accident in March 2025. This is complemented by its own initiatives. The in-house HyperOS connects all product categories, and a new research center in Germany highlights the Company's ambitions in Europe. The stock is currently trading at EUR 6.284.

Silver North Resources – Funds secured, focus on Yukon projects

Silver North Resources has successfully completed its private placement. Approximately CAD 2.1 million will flow into the Company's coffers through the sale of tax-advantaged flow-through units at CAD 0.21 per unit. The model offers tax advantages to investors, as the funds must be used entirely for Canadian exploration expenditures in the Yukon until the end of 2026. In addition, the Company plans to raise up to CAD 500,000 through a further placement for operating costs and project development. The budget will enable focused work on the key Haldane and GDR projects.

Silver North is making its mark in the historic Keno Hill silver district with its 100% owned Haldane project. The 2024 drill campaign delivered strong results at the newly identified Main Fault Zone. Up to 28 m wide mineralized zones with impressive silver values of up to 1,088 g/t, partly accompanied by unexpectedly high gold grades of up to 3.9 g/t. The combination of high-grade veins and broad, low-grade mineralization in the vein zones significantly increases the economic potential. Ten drill holes totaling approximately 2,500 m are planned for August 2025 to follow this promising structure along strike and down dip.

Silver North is focusing on two key pillars within the emerging Silvertip CRD district: the newly acquired GDR project, which includes the Veronica claims, and the TIM project, optioned from Coeur Mining. At Veronica, a still-unexplained 450 x 450 m silver-lead-zinc soil anomaly awaits further investigation. Meanwhile, at TIM, Coeur's 2024 drill program has not yet confirmed the presence of high-grade ore, but it has identified key geological features of an active CRD system. The pending assay results and geophysical data will now help identify the most promising zones within this system. The partnership with Coeur brings both expertise and financial support to this systematic exploration effort. Notably, Silver North's share, currently trading at CAD 0.23, remains above the price of the recent capital measure, signaling investor confidence and relative strength.

Super Micro Computer – AI boom drives growth – but not without risks

For server manufacturers like Super Micro Computer (SMCI), silver is indispensable as a highly conductive material in electronic components. However, since the Company only integrates pre-made components into its servers, its dependence on silver is relatively low. Even sharp price jumps have little impact on overall costs, as silver accounts for such a small proportion of the materials used. Components such as semiconductors are more critical. Furthermore, as all major competitors are equally affected, there is no strategic disadvantage. Silver is only a marginal issue for investors in SMCI.

SMCI is benefiting massively from the AI server boom. With specialized solutions, such as for NVIDIA's latest chips or efficient liquid cooling (DLC), the Company more than doubled its revenue last year. But the race is getting tougher. Competitors such as Dell and HPE are aggressively entering the market, while Chinese players like DeepSeek are increasing the pressure to innovate. This is having a direct impact on profitability. The gross margin recently slipped below 10%, a far cry from the previous 15%. Scaling is therefore becoming a must.

Despite margin pressure, SMCI remains an exciting company in the AI infrastructure market. Strong partnerships with NVIDIA and AMD, energy-efficient technologies, and the expansion of its own manufacturing expertise are clear advantages. For investors, the potential is enormous, especially if demand for AI remains high. However, the stock is not a sure bet. The ability to scale profitably despite competition and cost risks will determine long-term performance. Volatility remains inevitable. The stock is currently trading at USD 51.77.

The structural silver shortage, driven by tech industries such as solar, AI, and e-mobility, is acting as a powerful market driver. Xiaomi is struggling with rising material costs for electronics and electric vehicles, which are putting pressure on its margins despite strong growth in these segments. Silver North Resources is benefiting directly as an explorer. Money worries have been banished by the successful capital increase, and promising projects such as Haldane in the Yukon position the Company ideally in the race for new deposits. Super Micro Computer, on the other hand, remains largely unaffected by the rise in silver prices. The low silver content in its AI servers makes price jumps a negligible cost factor, allowing the Company to focus on growth and margins in a highly competitive environment.