Is Himax Technologies (HIMX) the Best Augmented Reality Stock to Invest in Under $10?

Himax Technologies (HIMX) has emerged as a promising player in the augmented reality (AR) sector, with its stock trading under $10. The company's expertise in display driver ICs and complementary metal-oxide-semiconductor (CMOS) image sensors positions it well to capitalize on the growing AR market. Here's why Himax Technologies could be the best AR stock to invest in under $10.

1. Growing AR market: The global AR market is expected to reach $340.16 billion by 2028, growing at a CAGR of 46.6% from 2021 to 2028. Himax's AR products, such as liquid crystal on silicon (LCoS) microdisplays and CMOS image sensors, are well-positioned to benefit from this growth.
2. Strong partnerships: Himax has formed strategic partnerships with leading companies in the AR and display industries, such as Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia. These collaborations enable Himax to leverage its partners' expertise and resources to develop and commercialize cutting-edge AR technologies.
3. Exclusive supplier roles: Himax is the exclusive supplier of micro-lens arrays for the first and second generations of COUPE FAUs, further strengthening its growth prospects. The company's role in the development and ecosystem visibility of Taiwan Semiconductor's Compact Universal Photonic Engine (silicon photonics) development also contributes to its potential for robust expansion.
4. Attractive valuation: Himax's stock is trading at a P/E ratio of 18.04, which is lower than many of its competitors in the AR space. This undervalued status presents an opportunity for investors to buy into the company at a relatively low price.
5. Strong financial performance: Himax's revenue has been growing, with a 12.75% increase from 2023 to 2024, reaching $1.07 billion. The company's EPS has also been increasing, with a 53.00% growth from 2023 to 2024, reaching $0.43. Analysts predict that Himax's revenue will reach $1.16 billion in 2026, with EPS of $1.00.
6. Diversified product portfolio: Himax's product portfolio is not solely focused on AR. The company also offers display driver ICs and timing controllers for various applications, such as televisions, laptops, and mobile phones. This diversification helps mitigate risks associated with relying on a single market segment.



In conclusion, Himax Technologies (HIMX) is well-positioned to capitalize on the growing AR market, with strong partnerships, exclusive supplier roles, and a diversified product portfolio. The company's attractive valuation and strong financial performance make it an appealing investment opportunity for those looking to invest in the AR sector under $10. As the AR market continues to grow, Himax Technologies is poised to be a significant player in the space.