Himax Technologies (NASDAQ:HIMX) shares shot up 44.9% on Thursday after TF International Securities' analyst Ming-Chi Kuo said it may be a supplier to Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor (NYSE:TSM).

"Himax is expected to leverage its WLO (Wafer-Level Optics) technology and strong partnership with FOCI (Fiber Optic Communications) to enter the supply chain for TSMC’s CPO (Co-Packaged Optics) and Nvidia’s next-generation AI chips Rubin series," Kuo wrote on his blog. "Looking ahead, CPO is anticipated to become the critical chip design of AI servers and HPC, making WLO a key driver of long-term growth for Himax."

Upcoming trends in AI server and high performance compute chip design are likely to focus more on maximizing transfer efficiency through co-packaged optics in an effort to "take advantage of the computing power upgrades provided by advanced nodes," Kuo added.

Himax did not immediately respond to a request for comment from Seeking Alpha.