Himax Technologies, Inc. (HIMX) Poised for AR Growth With Analyst Backing and New Technology Push

Himax Technologies Inc. (NASDAQ:HIMX) is one of the best augmented reality stocks to buy right now. Himax Technologies Inc. (NASDAQ:HIMX) holds a Moderate Buy rating from one analyst, with a 12-month price target of $10, implying about 32% upside from the current price of $7.58.

Himax Technologies, Inc. (HIMX) Poised for AR Growth With Analyst Backing and New Technology Push

Earlier on November 6, the company outlined its prospects in the automotive sector, backed by new technology offerings and comprehensive customer coverage.

Likewise, the company is expanding its footprint into emerging areas beyond display ICs, including ultralow-power AI CPO and smart glasses. The push comes amid the company’s third-quarter revenue dropping 7.3% to $199.2 million. The drop still came on top of the company’s guidance that expected a decline of between 12% and 17%. Likewise, it posted an operating loss of $0.6 million and a profit per diluted ADS of 0.6 cents.

Himax Technologies exited the third quarter with $278.2 million in cash and cash equivalents. Quarter-end inventories rose to $137.4 million from $134.6 million in the second quarter. The company expects its fourth quarter revenue to remain flat quarter over quarter, with Gross margins increasing slightly and profit of between 2 cents and 4 cents per diluted ADS.

Meanwhile, Robert W. Baird analyst Tristan Gerra reiterated a Buy rating on the stock on November 6 and set a $10 price target.

Himax Technologies, Inc. (NASDAQ:HIMX) supplies core components used in AR devices, including LCoS microdisplays, wafer-level optics, 3D-sensing solutions, display-driver ICs, and low-power AI chips, while also serving broader markets like TVs, smartphones, and automotive displays. Its AR parts—such as microdisplays and CMOS sensors—are used by OEMs to build smart glasses and head-up displays. In 2025, Himax introduced an ultra-bright Dual-Edge Front-lit LCoS microdisplay and worked with Vuzix to launch an integrated AR optical module for next-generation glasses. Because Himax provides the components rather than finished devices, it functions as an AR enabler and beneficiary.

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.