Himax Technologies (HIMX) is having a huge day, up more than 35% this afternoon to trade above $9 per share. The stock has now surpassed multiple key moving averages, with the 20-day, 50-day, and 200-day SMAs all trailing below the current price.
Today’s price spike is occurring on heavy volume of over 11 million shares, compared to the stock’s daily average of fewer than 1.5 million. The breakout in HIMX today has been triggered by an analyst report suggesting the semiconductor stock is set to join the supply chain for artificial intelligence (AI) heavyweights Nvidia (NVDA) and Taiwan Semiconductor (TSM).
HIMX stock’s 14-day Relative Strength Index (RSI) now stands at a towering 86.87, indicating short-term overbought conditions, which could suggest a potential pullback.
More broadly, however, HIMX is valued at a forward price-to-earnings (P/E) ratio of 14.90, and a price-to-sales (P/S) ratio of 1.31. The company’s recent financial performance includes strong third-quarter results, with revenue growth driven by advancements in AI and OLED sectors. Earnings have also improved, reflecting the company's strategic initiatives, including a $20 million share buyback program.
Though only one analyst is currently tracking the stock, HIMX is rated “Strong Buy,” with a price target of $7.
While investors may want to avoid buying in squarely at today’s highs, HIMX appears to be fairly valued with potential upside, supported by its recent financial performance and growth initiatives.
This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor had a position in: NVDA . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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