Himax Technologies (HIMX) Surges on Analyst Upgrade and Strategic Partnerships

Himax Technologies, Inc. (HIMX) stock surged on Friday, driven by a bullish outlook from an analyst and strategic partnerships that position the company for significant growth. The Taiwanese fabless semiconductor company, which specializes in display imaging processing technologies, saw its shares rise by nearly 6% on the day.

The catalyst for Himax's stock surge was an upgrade from TF International Securities analyst Ming-Chi Kuo, who raised his price target for HIMX from $7.00 to $15.00. Kuo cited the company's growing presence in Co-Packed Optics and Augmented Reality as key factors contributing to his optimistic outlook. Additionally, Kuo projected strong revenue growth for Himax, estimating $1.16 billion for 2026, $1.42 billion in 2027, and $2.4 billion in 2028. These projections are significantly higher than the consensus estimates for the company's financial performance.

Himax's stock surge can also be attributed to its strategic partnerships, particularly its role as an exclusive supplier of micro-lens arrays for Taiwan Semiconductor Manufacturing Co (TSMC)'s Compact Universal Photonic Engine (COUPE) Field-Programmable Gate Arrays (FAUs). This partnership is expected to drive significant revenue growth for Himax, as COUPE is a high-priority project for TSMC, with the first generation already fully developed and undergoing mass production validation. The second generation is expected to start mass production validation in the first half of 2026.