1. Himax Technologies, Inc. (NASDAQ:HIMX)
Stock Upside Potential: 55.52%
Number of Hedge Fund Holders: 11
Himax Technologies, Inc. (NASDAQ:HIMX) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 7, Himax Technologies, Inc. (NASDAQ:HIMX) reiterated that it expects growth momentum to persist throughout the year, driven by new automotive projects and growth in the non-drive IC business.
The company is increasingly focusing on key growth areas of smart glasses, ultralow power AI, and CPO as it also navigates an uncertain macro environment. The emerging technologies are well poised to diversify the company’s revenue base and deliver attractive gross margins. The sentiments come against the backdrop of solid first-quarter results, whereby revenue totaled $199 million, a slight 2% sequential decline.
Operating profit came in at $10.2 million, with an operating margin of 5.1%, up from 3.4% in last year’s same quarter. After tax profit improved to $8 million or 4.6 cents per diluted ADS compared to $6.3 million or 3.6 cents per diluted ADS last quarter.
Similarly, the company’s board has approved a cash dividend of 25.2 cents per ADS. The dividend is to be paid on July 10, 2026, to shareholders of record as of June 30, 2026.
“Since our IPO in 2006, we have consistently rewarded shareholders for their ongoing commitment with our dividend policy,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax. “This year, we are pleased to declare an annual cash dividend of 25.2 cents per ADS, representing a payout ratio of 100.0% of last year’s profit. The high payout ratio reflects our healthy balance sheet and positive outlook for cash flow generation over the next few years.
Himax Technologies, Inc. (NASDAQ:HIMX) is a fabless semiconductor company that specializes in display imaging processing technologies. It designs and sells critical components, such as display driver ICs and timing controllers that are essential for powering screens in consumer electronics, automotive displays, and augmented reality (AR) devices.
While we acknowledge the potential of HIMX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HIMX and that has 100x upside potential, check out our report about the cheapest AI stock.
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