When Himax (NASDAQ:HIMX) launched its WiseEye solution that would support Google’s (NASDAQ:GOOG) TensorFlow microcontroller, the stock popped to almost $4.50. Speculators should watch out: the jump may not last.
Himax said that it launched the "WiseEye WE-I Plus HX6537-A solution that supports Google’s TensorFlow Lite for Microcontrollers." By supplying the software development kit for developers, it will support deep learning inferences. Now, since artificial intelligence and deep learning are catchy buzzwords, investors bought up Himax shares in hopes that wearable device sales would drive its revenue higher.
Himax headed in the teens after Google took an interest in the company in the 2013 period. But the failure of Glass and the waning public interest in augmented reality and virtual reality left Himax without growth prospects in this space. Still, the company posted surprisingly better quarterly results recently. That put an end to the downtrend in its stock.
Given that HIMX stock is for traders, adding to a position after the jump may prove a losing move. Wait for the stock to settle back to the $3.25 range before holding. Investors may also consider Lumentum (NASDAQ:LITE) and Ambarella (NASDAQ:AMBA). LITE continues to grow while Ambarella may have a better entry price at yearly lows.
