We recently published a list of 10 AI Stocks Making Moves This Week. In this article, we will explore how Himax Technologies, Inc. (NASDAQ: HIMX) compares with other notable AI stocks that are also in the spotlight this week.
China’s Position in the AI Arms Race
Is China finally surging ahead in the AI arms race? While there are discussions suggesting advancements, top executives from major artificial intelligence firms indicate that China needs to make significant changes to its infrastructure and enhance its export capabilities in order to maintain a competitive edge.
U.S. Competitors Speak Out
During a U.S. Senate hearing last Thursday, leaders from American AI companies emphasized that while the U.S. is currently leading the AI race, there is a necessity for Washington to bolster its infrastructure and advocate for AI chip exports to preserve its advantage over competitors like Beijing.
Regulatory Challenges and Strategic Responses
The U.S. Senate Commerce Committee, led by Republican Senator Ted Cruz, is working to alleviate regulatory hurdles facing artificial intelligence in the country. This initiative has gained traction particularly as China showcases its own AI developments, including innovative and cost-effective models from companies like DeepSeek, as well as advanced chips from Huawei.
Concerns within the U.S. tech sector are prompting appeals to the Trump administration for favorable policies, including a relaxation of limits on AI chip exports. These moves arise in response to China’s growing influence and capabilities in the AI field.
Adopting the Right Technology
“The number-one factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world. The lesson from Huawei and 5G is that whoever gets there first will be difficult to supplant.”
The Role of AI Leaders
Sam Altman, the CEO of OpenAI, also provided testimony during the Senate hearing. He asserted that he believes advances in society driven by AI will accelerate over the coming years due to U.S. innovation. Yet, he highlighted that significant investment in infrastructure is paramount for sustained growth.
In earlier written testimony reviewed by Reuters, it was noted that AI leaders are urging U.S. lawmakers to simplify federal permitting for the energy demands associated with artificial intelligence and to initiate the release of more government data sets for AI training purposes.
Infrastructure Needs for a Thriving AI Economy
“America’s advanced economy relies on 50-year-old infrastructure that cannot meet the increasing electricity demands driven by AI, reshoring of manufacturing, and increased electrification.”
Selected AI Stocks for Investment
In this article, we compiled a selection of AI stocks based on news articles, stock analyses, and press releases. The chosen stocks are also favored by hedge funds. The data regarding hedge fund holdings is from the fourth quarter of 2024.
Highlighting Himax Technologies
Himax Technologies, Inc. (NASDAQ: HIMX) is a fabless semiconductor company specializing in display imaging processing technologies. On Friday, May 9th, Morgan Stanley initiated coverage on the stock with an “Overweight” rating and established a price target of $8.80. The firm indicated that the company is on track for floor growth and margin enhancement.
“We expect Himax to expand its non-driver IC [integrated circuits] businesses by tapping into the cloud AI and edge AI markets (AI glasses and PCs), which bodes well for top-line growth and margin expansion.”
Himax’s Standing Among Peers
Overall, HIMX ranks 9th on our list of AI stocks making moves this week. While we recognize its potential as an investment, we believe there are other AI stocks with greater potential for higher returns within a shorter time frame. For instance, one particular AI stock has surged since the beginning of 2025, while many popular AI stocks have experienced a drop of around 25%. If you are in search of a more promising AI stock than HIMX that trades at less than five times its earnings, we recommend checking out our report on the cheapest AI stock available in the market.
Looking Ahead in AI Investments
In conclusion, the landscape of AI investments is continuously evolving, and as more companies gain traction, investors should carefully analyze the market dynamics. With promising technologies emerging and hedging strategies in place, there are numerous opportunities for growth in artificial intelligence. As we navigate through this competitive environment, it becomes crucial to stay informed and adapt investment strategies accordingly.
Disclosure: None. This article is originally published at Insider Monkey.
https://finance.yahoo.com/news/himax-technologies-himx-morgan-stanley-202235147.html
