Buy This Explosive Tech Stock for 42% Profits

One tech stock could save your portfolio from the push and pull of today's market.

That news may come as a surprise since tech stocks aren't doing too well right now. With the market in such a volatile state, most investors are pulling their money out of the tech sector left and right.

"Sell everything now" seems like sound advice, but it could cause you to lose out on big profit opportunities.

Fortunately, a few unicorn stocks are holding steady amid these wild market fluctuations. Some even have the ingredients to create an explosion of wealth very soon.

The company that stands out is Himax Technologies Inc. (NASDAQ: HIMX).

It's blowing up on the stock market, and for a good reason: sales increased year over year in 2021, and they've turned a corner with production and supply chain regularity.

Here's why Himax Technologies stock is one to watch.

What Is Himax Technologies?

Himax Technologies Inc. is a fabless semiconductor company that provides display drivers and other semiconductor products to customers worldwide.

The company is listed on the Taiwan Stock Exchange and is a crucial supplier to several large consumer electronics companies, such as Apple, Samsung, and Sony. In addition, the company's display drivers power a wide variety of consumer electronics products, including smartphones, tablets, and television.

We should mention that the global chip shortage has largely slowed consumer electronic production, but HIMX just doesn't seem affected.

The company's stock has surged more than 60% over the past year, and it continues to trade near all-time highs. Sales increased year over year in 2021, and it's turned a corner with production and supply chain regularity.

Here's a little more on that.

Himax Technologies Is Profitable and Promising

Long-term investors should take note of this semiconductor powerhouse.

The company is also seeing strong growth in its bottom line. In the most recent quarter, the company's net income grew by more than 150% year over year. This should give investors confidence that market analysts expect continued success for Himax in the years ahead.

As of its 2021 financial report, Himax had a net profit of $294 million. This is a significant increase from the net profit of $166 million in 2020.

$1.093 per diluted share increased from the $0.727 per diluted share in 2020. This is due to the company's strong sales growth and margin expansion. Himax's 2021 performance shows that it is a profitable and growing company.

Himax has successfully expanded beyond its core market of display drivers into new areas like augmented reality (AR) and virtual reality (VR). In particular, the company's "light field" technology is seen as a critical player in developing AR devices.

It's also well positioned to capitalize on the growing demand for chips in vehicles. The company's automotive products accounted for over 20% of its total revenue in 2016, and this figure is likely to grow as autonomous driving becomes more prevalent.

The company is a significant player in the display driver market, a critical component in many of today's popular gadgets, including smartphones, tablets, and virtual reality headsets.

Himax is also well positioned in the fast-growing automotive market. The company supplies displays and driver ICs for vehicles ranging from luxury cars to mass-market vehicles.

As a leading supplier of sensors and sensor fusion products for many IoT applications, the firm also benefits from the $212 billion Internet of Things (IoT) market. And the demand for these products has been constant, despite the chip shortage.

Weather the Market Storm with Himax Technologies

The stock market has been unstable recently, with the semiconductor sector taking a particularly hard hit. As a result, many tech stocks have seen their values plummet, leaving investors worried about their future.

While it's always risky to invest in stocks, some experts predict that the market will continue to decline, so anyone thinking about buying tech stocks should do their research first.

Himax is the exception. The firm has a strong growth history and is currently undervalued, which means it could skyrocket at any time. As a result, it's perfect for investors looking to capitalize on the market's instability.

HIMX's current share price is around $10.85, but analysts predict a price jump to $15.38 in the next 12 months. So, if you bought shares today, you'd have a potential profit of 42% on your investment.

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