POWR Stock of the Week Under $10: Himax Technologies (HIMX)

NASDAQ: HIMX | Himax Technologies Inc. ADR News, Ratings, and Charts

HIMX – The semiconductor market is made up of a number of companies that produce products in a wide range of applications. You’re probably most familiar with Nvidia and Intel, makers of AI and computer chips. But a variety of other players make products that ensure the semiconductor landscape operates as designed. One of those companies, a maker of very important imaging drivers, is Himax Technologies.

This doesn’t happen as often as it did even a few years ago (because it’s done automatically in the background now), but do you remember when you would get an alert on your computer that you needed to “Update Drivers”? Did you ever wonder exactly what a driver was and why they always seemed to need updating?

Lets dive into that in our under $10 stock this week, with Himax Technologies (HIMX). Himax is what is known as a fabless semiconductor developer that focuses on digital imaging technology. They are a smaller player in the overall imaging drivers market with about 8% of market share. 

So, what are these imaging drivers? You can think of them as a language interpreter, just like the ones you see when world leaders meet, or a foreign athlete who doesn’t speak english is interviewed on TV. The drivers are interpreters between the computer operating system and the graphics hardware. 

Every piece of graphics hardware speaks a foreign language when it comes to your computer’s operating system, and the drivers are there to tell the graphics hardware what to display given the commands coming from your computer’s operating system. 

And Himax makes the driver software that lets things like your laptop, cellphone, and even car display be able to work and show you the appropriate picture or video. The company is seeing growing demand, especially in the automotive market where it is a larger player, as new displays are added in even lower end automobiles. 

In its latest earnings report, Himax beat expectations for both revenue and earnings. As Jordan Wu, President and CEO stated, “[O]our longer-term outlook for the automotive business, our largest revenue contributor, remains positive, as we maintain a dominant position in the sector. The majority of our design-wins…both relatively new technologies for [the] automotive sector, are slated to commence mass production during the next two years, thereby further fortifying our market share leadership amidst growing competition.” 

The stock was recently upgraded to outperform by Credit Suisse with an $8 price target. That is well above its current price of just under $6, but also just back to where the stock was trading in the early part of this year. 

Himax trades at just 1.7x its cash holdings, and currently pays a 4.4% dividend, which is a good sign of stability for a semiconductor company. Semiconductors are very cyclical, and that dividend provides a nice base for any downturn.

Not surprisingly, Himax has its highest component rating in our POWR Ratings in the Value area, where it has an A rating. It also has a B rating in the Momentum component. 

At these prices Himax definitely deserves a look, especially if, as the market is expecting, we’re in the tail end of the rate cycle and about to see a resurgence in smaller stocks as rates move lower. 

What To Do Next?

If you like the stock shared above…then you will love this new special report sharing 3 low priced companies with tremendous upside potential.

3 Stocks to DOUBLE This Year >

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


HIMX shares were trading at $5.76 per share on Thursday afternoon, down $0.12 (-2.04%). Year-to-date, HIMX has declined -0.77%, versus a 20.06% rise in the benchmark S&P 500 index during the same period.


About the Author: Jay Soloff


Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
HIMXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Updated Stock Market Expectations

The S&P 500 (SPY) has already reached an impressive goal of hitting 6,000. Yet you can see how much shares are struggling now up against this resistance. Steve Reitmeister shares his views on what comes next for the market and his top 10 stocks to stay on the right side of the action.

Read More Stories

More Himax Technologies Inc. ADR (HIMX) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All HIMX News