Himax Technologies Inc. (NASDAQ:HIMX) is one of the 10 Stocks Outperforming Wall Street With Monster Returns.
Himax soared to an over four-year high on Thursday, as investors snapped up shares after the company posted an upbeat outlook for the remainder of the year despite macroeconomic challenges impacting its performance for both the first and second quarters of the year.
At intra-day trading, the stock climbed to a record high of $17.95 before paring gains to finish the session just up by 30.01 percent at $16.03 apiece.
Photo from Himax Technologies website
In an updated report, Himax Technologies Inc. (NASDAQ:HIMX) slashed its net income attributable to shareholders by 60 percent to $7.99 million from the $19.99 million in the same period last year. Revenues also declined by 7.4 percent to $199 million from $215 million year-on-year.
“The rapid rise in AI demand is placing unprecedented strain on memory chip supply, impacting many non-AI applications. This, in turn, has led to capacity tightness across foundry, packaging, and testing in mature process nodes where Himax is anchored, putting upward pressure on the company’s cost structure. Rising gold prices have further compounded these cost pressures,” Himax Technologies Inc. (NASDAQ:HIMX) said.
The company also expects said challenges to spill over to the second quarter of the year, but assured that it is working continuously with its customers on pricing adjustments.
However, Himax Technologies Inc. (NASDAQ:HIMX) turned more optimistic about its outlook for the second half of the year, amid new automotive projects scheduled to enter mass production during the period, as well as anticipated growth in non-driver IC businesses such as Tcon and WiseEye AI.
“Despite ongoing macro uncertainty, Himax continues to expand beyond its traditional display IC business, focusing on key growth areas including smart glasses, ultralow power AI, and CPO. These emerging technologies present significant growth opportunities that help diversify Himax’s revenue base into areas with attractive gross margin profiles and profitability while also strengthening its overall competitiveness,” it said.
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