Himax Technologies Inc. (NASDAQ:HE IS NOT) is one of the hidden AI stocks under $10 to buy. On February 4, Morgan Stanley downgraded Himax from overweight to equal weight, maintaining a price target of $8. This decision was announced amid multiple challenges for display driver IC vendors.

Morgan Stanley predicts that reduced demand in the PC, smartphone and automotive sectors, combined with gross margin pressure and a lack of new growth engines, will hamper performance. Additionally, the company noted that rising memory costs are expected to create additional headwinds, contributing to continued declines in these primary market segments.

In other news, on January 7, Himax Technologies Inc. (NASDAQ: HIMX) and Vuzix Corp. presented a reference design of lightweight, prescription-ready optical components for AR glasses at CES 2026. This collaboration integrates Himax’s ultra-compact HX7319FL color sequential. scalable solution for OEMs and eyewear manufacturers. By providing a production-ready platform that balances performance and form factor, the companies aim to accelerate the commercialization of all-day wearable AR glasses.

Photo from the Celestica website

Himax Technologies Inc. (NASDAQ: HIMX) is a fabless semiconductor company providing display image processing technologies in China, Taiwan, Korea, Japan, the US and internationally. The company operates in two segments: Driver IC and Driverless Products.

While we recognize HIMX’s investment potential, we believe some AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

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Disclosure: no. This article is originally published in Monkey Insider.