9 Best Augmented Reality Stocks to Invest in Under $10

1. Himax Technologies Inc. (NASDAQ:HIMX)

Share Price as of January 31: $9.75

Number of Hedge Fund Holders: 15

Himax Technologies Inc. (NASDAQ:HIMX) is a fabless semiconductor company that provides display imaging processing technologies. It offers display driver integrated circuits (ICs) and timing controllers used in televisions, PC monitors, laptops, and automobiles. The stock has been flying high in the market amid growing expectations that the company is well-positioned to benefit from Taiwan Semiconductor’s AI and silicon photonics push.

As the sole supplier of micro-lens arrays for Taiwan Semiconductor’s silicon photonics initiative, which is currently being validated, Himax Technologies Inc. (NASDAQ:HIMX) stands to gain from first- and second-generation COUPE. It delivered solid third-quarter results with revenues of $222.4 million as the automotive and tablet sectors bolstered the company’s performance, with robust sales reported despite a slight sequential decline in revenues.

Research firm Baird’s recognition of Himax Technologies Inc.’s (NASDAQ:HIMX) potential growth in the fields of Augmented Reality (AR) and Co-Packed Optics is reflected in its consensus buy rating on the stock. According to the company, Himax has an advantage in the developing market for AR devices thanks to its patented technologies in waveguide and microdisplay components. In order to improve non-driver IC sales, Himax is also developing cutting-edge CPO technology and extending its WiseEye AI Sensing solution into new applications.

While we acknowledge the potential of Himax Technologies Inc. (NASDAQ:HIMX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HIMX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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