Himax Technologies Inc

StockStory identifies Broadcom and Seagate as semiconductor stocks with impressive fundamentals while flagging Himax Technologies as one facing challenges. Broadcom, with a market cap of $1.89 trillion, has seen 33.1% annual revenue growth over the last two years and boasts a best-in-class gross margin of 76.6%. Seagate, valued at $205.5 billion, posted 32.6% annual revenue growth over the same period and is projected to accelerate to 42.9% revenue growth in the next 12 months. In contrast, Himax, a $2.38 billion display driver chip maker, has experienced a 4.2% annual revenue decline over five years and a 22% annual drop in earnings per share, compounded by a high net-debt-to-EBITDA ratio of 8×.

Amkor and Himax shares fell sharply in afternoon trading after TSMC raised its capital expenditure guidance, triggering a broader semiconductor selloff. TSMC increased its 2026 capex outlook to $60–$64 billion from a prior ceiling of $56 billion, despite reporting record profits and raising its full-year revenue growth forecast to slightly above 40%. The higher spending plan shifted investor focus to free cash flow compression and margin dilution, with management guiding third-quarter operating margins about 70 basis points below consensus and warning that overseas expansion and 2-nanometer ramp costs would pressure gross margins in the second half. Amkor dropped 5.9% and Himax fell 6% as the market reassessed the cost of scaling AI manufacturing capacity across the sector.

StockStory named Copart as a profitable stock to buy while advising investors to avoid Himax and RTX. Copart, which operates an online auction platform for salvage vehicles, posted a trailing 12-month GAAP operating margin of 36.6% and 13.4% annual revenue growth over five years. Himax faces a 4.2% annual revenue decline over five years and a high net-debt-to-EBITDA ratio of 8×. RTX shows slowing demand with estimated sales growth of 5.9% and low returns on capital.