What happened?
Shares of semiconductor maker Himax Technologies (NASDAQ: HIMX) fell 24.5% in the morning session after the company reported third-quarter 2026 financial results and signaled weakening demand in its automotive business.
According to a company press release, Himax Technologies reported third-quarter revenue of $246.8 million, up 23.9% year on year, and GAAP profit of $0.11 per share. Revenue was in line with Wall Street expectations, while earnings exceeded analyst estimates. Following strong inventory replenishment in the second and third quarters to meet overseas orders from Chinese automakers, its automotive business experienced softer demand in the fourth quarter shortly after China's National Day holidays.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Himax? Access our full analysis report here, it’s free.
What is the market telling us
Himax’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. But moves this big are rare even for Himax and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 3.1% on the news that worries weighed on memory chipmakers and sparked selling pressure across the broader semiconductor sector, following news of domestic Chinese technological advancements and looming labor strikes in Taiwan.
As detailed by TipRanks, Chinese chipmaker ChangXin Memory Technologies (CXMT) announced significant progress on a next-generation 4F² DRAM server-memory design due by late 2026, launching denser DDR5 enterprise server modules that directly rival architectures currently being developed by Samsung Electronics and SK Hynix. However, the financial research firm added that CXMT has yet to prove it can manufacture the chips in commercial volumes.
Himax is down 12.2% since the beginning of the year, and at $7.53 per share, it is trading 68.9% below its 52-week high of $24.19 from June 2026. Investors who bought $1,000 worth of Himax’s shares 5 years ago would now be looking at only $654.32.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
