Summary

Semiconductor industry is rapidly growing, and demand is outpacing supply
HIMX recent earnings exceeded expectations and they are well position for the coming months
Analyst price target moved to $17.00

Market Overview

The semiconductor industry is poised for faster growth in 2021 now that it has recovered from a cyclical downturn. World Semiconductor Trade Statistics predicts that chip sales will accelerate to 8.4% growth next year, reaching $469 billion in revenue. For 2020, it estimated that chip sales would rise 5.1% to $433 billion. That's after semiconductor industry sales fell 12% to $412 billion in 2019. Semiconductor industry sales returned to growth this year despite disruptions from the Covid-19 pandemic.

Q4 Earnings – Feb 4 2021

HIMX recently released their Q4 earnings report and beat expectations – key points are highlighted below:

Successfully secured more capacity for 2021 as compared to the level of Q4 2020, when we reached the recent peak quarterly shipment.
FY annual 2020 revenues increased to $887.3M, next year this company will generate over $1.2Billion(remember Market Cap only $2.0B)
Strong momentum across all major business segments in Q4. TV, monitor, automotive(thanks to EV) driver ICs and CMOS image sensor, large driver ICs, 23.3% of revenues, up 15.2% QoQ; small and medium-sized driver ICs, 64.5% of revenues, up
Q4 Driver IC revenues for automotive up 32.4% QoQ as car makers resumed,

Analyst Ratings

Credit Suisse analyst Jerry Su raised the price target on Himax Technologies (NASDAQ: HIMX) to $17.00 (from $11.50) while maintaining a Outperform rating.