Himax Blames 'Abrupt and Significant Correction' in Auto Chip Demand as Stock Crashes Nearly 30%. Is Now the Time to Buy?

Himax Technologies reported a sudden and significant pullback in automotive display driver chip demand following China's early-October National Day holidays, leading to a guidance cut with Q4 revenue expected to drop 22-26% from Q3. The stock plunged nearly 30% on the news. Despite the sharp decline, management maintains that the correction is temporary and still expects full-year automotive chip revenue to grow about 10%, suggesting the issue stems from customer over-ordering and inventory adjustments rather than fundamental demand weakness.