Morgan Stanley: Himax Is The Best Hardware To Play Augmented And Virtual Reality

Morgan Stanley analyst, Charlie Chan, believes that Himax’s “strength in micro-processor technology and role as a strategic supplier positions Himax well if smart glasses gain momentum.”

Augmented, Virtual Reality And Venture Capitalists

Venture capital investments in augmented and virtual reality have grown to $3 billion over the past two years, with global platforms either acquiring terms or intending to begin production of smart headsets in 2016.

“Given the segment's momentum, we believe 2016 will be an inflection point for AR smart glasses,” Chan stated.

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Chan believes that the company is well-positioned to benefit from the acceleration in the augmented reality space, given Himax’s strong micro-projector technology, which is supported by an LCoS chip.

The Influence Of Smart Glass

Smart glass related sales are estimated to contribute 17 percent of the company’s revenues in 2016, from 2 percent in 2015.

“[W]e expect Himax to usher in a new product cycle for this legacy business by introducing its AMOLED driver IC and TDDI products. More importantly, we think the stable cash flow and customer base of this business can help support the LCoS business,” Chan added.