• Himax Technologies reported past fourth-quarter 2025 results showing sales of US$203.08 million and net income of US$6.34 million, alongside guidance for a 2% to 6% sequential net revenue decline and profit of US$0.02 to US$0.04 per diluted ADS in the first quarter of 2026.
• Management also highlighted that first-quarter 2026 should mark the low point for the year, with expected improvement supported by lean customer inventories, accelerating automotive projects, growing non-driver IC lines such as Tcon and WiseEye AI, and new on-cell OLED touch controller IC wins in high-end laptops and tablets entering mass production.
• We’ll now examine how Himax’s expectation that first-quarter 2026 will be the year’s trough shapes and potentially reinforces its investment narrative.

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Himax Technologies Investment Narrative Recap

To own Himax, you need to believe its core display-driver franchise and newer AI and automotive lines can offset margin pressure and uneven demand. The latest guidance for a modest Q1 2026 revenue pullback, framed as a likely trough, reinforces the near term catalyst of execution on automotive and non driver IC ramps, while also underscoring the key risk around demand volatility and profitability if that anticipated pickup does not come through as management expects.

The recent launch of the HX85200 on cell OLED touch controller IC, already designed into high end OLED laptops and tablets with mass production starting in Q1 2026, ties directly into that catalyst. It shows Himax pushing deeper into higher value non driver products that sit close to end devices, which may matter for investors watching how quickly newer lines like Tcon, WiseEye AI, and advanced touch controllers can meaningfully complement the more cyclical display driver business.

Yet even if Himax hits its Q1 trough guidance, investors should be aware of the risk that weak end demand and customer order delays could still...

Himax Technologies' narrative projects $1.1 billion revenue and $139.3 million earnings by 2028. This requires 7.4% yearly revenue growth and about an $65.1 million earnings increase from $74.2 million today.

Uncover how Himax Technologies' forecasts yield a $8.54 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were penciling in about US$1.1 billion of revenue and US$151.2 million of earnings by 2028, which is far more upbeat than consensus. Those views lean heavily on faster adoption of next generation displays and AI chips, while the latest Q1 2026 trough guidance and concerns about customer concentration suggest this bullish path is not guaranteed and may need to be revisited as new data comes in.

Explore 6 other fair value estimates on Himax Technologies - why the stock might be a potential multi-bagger!

Build Your Own Himax Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Himax Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Himax Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Himax Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.