Himax Technologies ( NASDAQ:HIMX ) saw its stock tick up, with TF International Securities analyst Ming-Chi Kuo calling it a key beneficiary of Taiwan Semiconductor's ( NYSE:TSM ) AI and silicon photonics push. Taiwan Semiconductor was also in the green.

Kuo highlighted Taiwan Semi's COUPE initiative, predicting strong revenue growth for Himax$1.16 billion in 2026, $1.42 billion in 2027, and $2.4 billion in 2028well above current forecasts. EPS projections of $1.00, $1.60, and $3.40 for those years also outpace 2026 consensus of $0.80. Himax stands to benefit as the exclusive micro-lens array supplier for both first- and second-generation COUPE, now in validation stages.

Meanwhile, AMD ( NASDAQ:AMD ) is expected to be Taiwan Semi's first COUPE client, while Nvidia ( NASDAQ:NVDA ) could adopt it for its Rubin GPUs if mass production stays on track. With AI spending accelerating, analysts see Himax well positioned for long-term upside.

This article first appeared on GuruFocus .