HIMX Should I Buy
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Himax Technologies Inc (HIMX) is not a strong buy at this time for a beginner investor with a long-term strategy. The lack of significant positive catalysts, weak financial performance, and neutral trading sentiment suggest that holding off on investment would be prudent.
The MACD is positive but contracting, RSI is neutral at 54.389, and moving averages are converging, indicating no clear trend. Support and resistance levels show a pivot at 9.377, with resistance at 11.207 and support at 7.548. The stock is trading below the pivot level, suggesting weakness.
Himax was confirmed as the sole microlens array supplier for Nvidia and potentially a primary supplier for Apple's upcoming smart glasses, leading to an 11% stock surge recently.
Morgan Stanley downgraded the stock to Equal Weight due to weaker demand in key markets, gross margin pressure, and lack of new growth drivers. Financial performance in Q4 2025 showed significant declines in revenue (-14.39% YoY), net income (-74.25% YoY), and EPS (-71.43% YoY).
In Q4 2025, revenue dropped to $203.08M (-14.39% YoY), net income fell to $6.34M (-74.25% YoY), and EPS declined to $0.02 (-71.43% YoY). Gross margin slightly decreased to 30.38% (-0.26% YoY), indicating weak financial health.
Morgan Stanley downgraded the stock to Equal Weight from Overweight, maintaining a price target of $8. The downgrade cites weaker demand in computers, smartphones, and autos, along with rising memory costs and lack of growth drivers.
