Himax Technologies (NASDAQ:HIMX) just crushed Q4 expectations, with revenue jumping 6.7% sequentially to $237.2 millionwell above guidance, driving its shares up over 10% at 1.22pm today. Gross margin hit 30.5%, driven by a stronger product mix and cost optimizations, while after-tax profit of $24.6 million or $0.14 per diluted ADS blew past forecasts. Automotive driver IC sales surged nearly 20% year-over-year, cementing Himax's dominance in the space with over 50% market share in TDDI. Meanwhile, its WiseEye AI segment is gaining momentum with top-tier laptop brands and smart home applications, setting the stage for bigger wins in 2025.

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That said, Q1 2025 won't be as flashy. Himax expects revenue to drop 8.5% to 12.5% quarter-over-quarter due to seasonal slowness, but year-over-year growth could still land between flat and up 4.6%. Unlike some consumer electronics peers benefiting from early orders driven by tariffs, Himax's core automotive businessnow over half its revenueisn't seeing that effect. But it's making big moves elsewhere, especially in AI computing with its co-packaged optics (CPO) technology, collaborating with leading AI players to push next-gen data transmission.

Himax turned heads at CES 2025, showcasing cutting-edge automotive display tech, ultra-low power WiseEye AI, and its ultra-bright LCoS microdisplay for AR glasses. With AR enthusiasm heating up, Himax is positioned as a key player in the shift toward AI-powered, lightweight AR wearables. Despite a quieter Q1, the company is riding strong tailwinds in automotive and AI-driven applications, setting up for a big year ahead.