It has been working to transform its existing subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd, into a profit center for its mobile, projector, and video delivery businesses. Consequently, the stock has gained 70.8% in price over the past three months to close yesterday’s trading session at $5.55, after hitting its 52-week high of $6.08.
However, PXLW reported losses in the second quarter despite its revenue growth. In addition, its projector business could be impacted again as several countries reimpose strict measures to restrict the spread of the highly contagious COVID-19 Delta variant. Furthermore, the current semiconductor chip shortage could last until the first half of 2023. So, PXLW’s near-term prospects look uncertain.