HiMax Technologies (NSDQ: HIMX) is a leading provider of video components for everything from smartphones to automobiles to virtual reality systems. What makes the company’s stock a great buy now are three things:

The company’s fortunes have ebbed and flowed over the past few years beating down its stock price.

As more big electronics companies pile into virtual reality systems it’s become a potential takeover target.

It’s turning a corner on revenue and earnings.

You’ve heard of virtual reality (VR) but you probably haven’t donned a VR helmet yet that seems to transport you to a new reality, or even used a VR app on your smartphone. Industry analysts predict that will change within a decade, as VR is expected to become the fastest-growing technology niche, with annual revenue exploding from $5 billion this year to more than $162 billion in 2020.

More than half of that revenue will come from hardware sales as users migrate from their phones to headsets and standalone systems. While the blazingly fast processors that have become available over the past few years are the brains of the systems, the display circuits that HiMax Technologies makes are their eyes. HiMax’s chips for liquid crystal on silicon (LCOS) displays provide the vision for most major developers of virtual and augmented reality.

The advantage of LCOS displays is that they’re about as thin as a standard pair of glasses, so they provide a more “normal” user experience—HiMax’s are the industry leader. Even though Google Glass was a flop (many users reported that the technology was just too creepy), HiMax’s LCOS provided the display. Those chips are also used by Microsoft’s Hololens and incorporated into products from Oseterhout Design Group, Optinvent, Lumus and Lenovo.

Highest of Hi-Def

HiMax isn’t a one-trick pony, though, as it also makes displays for super-sharp 8K televisions. Most high-definition televisions today have a resolution of two megapixels per frame. Many newer sets are now using 4K, or eight megapixels per frame. If you think the images on these new TVs are sharp, you should see the picture on an 8K set, which has a resolution of 32 megapixels per frame. The 8K image is so sharp that a lot of actors are afraid they won’t be pretty enough for TV anymore.

Those 8K sets are still too big and costly for most consumers, but HiMax reports that its shipments of 8K displays are growing. The company also sells displays and timing controllers for automotive applications, such as heads-up displays and in-vehicle touchscreens, a booming business as cars become more like computers on wheels.

Boom and Bust

HiMax has had its ups and downs. In 2013 HiMax shares shot up after Google bought a 6.3% stake in the company, mainly to make sure it had a steady supply of displays for its Google Glass. As Google Glass flopped, HiMax shares dropped. We saw a similar pattern this year, when the public learned HiMax was supplying displays for Microsoft’s Hololens, driving the shares up, and when Hololens shipments proved disappointing, HiMax dropped.

The company’s revenue dropped precipitously in 2015, falling to $691.79 million from $840.54 million in 2014. That was mostly due to plunging sales of smartphone and tablet displays as consumers put off upgrading devices, either because of costs or underwhelming product features. At the same time HiMax beefed up its staff to meet growing VR demand, a move that proved to be a huge drag on earnings per share, which dropped from 44 cents in 2014 to 18 cents last year.

This year is looking up, mostly because of the growing demand for television and automotive displays. Full-year revenue is expected to climb back to $803.16 million, while EPS is forecast to hit 41 cents.

Next year’s forecast is even better, with revenue expected to hit $844 million and EPS nudging up to 42 cents. According to CEO Jordan Wu, the company has been working with more than 30 customers in the virtual and augmented reality fields for more than 15 years. That work is paying off, so much, in fact, that the company is expanding its production lines for the next generation of LCOS displays.

We’re already seeing solid returns, with third-quarter revenue shooting up 32% year-over-year and net income rising nearly sevenfold to $13.6 million. Amazingly, though, that’s had little impact on the company’s stock price. Currently, it trades at just 21.7 times trailing one-year earnings, down from 41.7 times just a few months ago and well below its five-year average of 27 times.

That makes it a bargain, and considering the growing VR market, a ripe takeover target. With a market cap of just over $1 billion and market-leading technology, big VR players like Alphabet or Facebook could basically buy HiMax with their lunch money.

HiMax holds nearly 3,000 patents in display and timing technologies, intellectual property that is worth the company’s sale price alone. Because HiMax is based in Taiwan, a purchase also would be a good use of cash for a U.S. company that doesn’t want to repatriate that money for tax reasons.

To be clear, we don’t have any inside track on a potential buyout offer, but the reasons for one are too compelling to ignore.

Buy HiMax Technologies up to $15.