Himax: The Quiet Automotive Chip Leader Wall Street Keeps Underestimating

Himax Technologies is rated Buy as its automotive-led mix shift is driving sustainably higher margins and earnings power.

HIMX exceeded Q2 2026 revenue, margin, and earnings guidance, with automotive silicon now over half of group sales and gross margin rebounding to 33.1%. Valuation remains attractive, with forward earnings in the mid-teens and optionality in smart glasses, co-packaged optics, and OLED notebook projects.

Key risks include mature node foundry supply constraints and potential dividend sustainability if operating cash flow does not improve.

I rate Himax Technologies ( HIMX ) a Buy, as its automotive-led mix shift is beginning to translate into sustainably higher margins and earnings power while the valuation remains reasonable.