AMD, INTC and NVDA Forecasts – Chips Mixed Early on Monday

AMD Technical Analysis

The market for AMD does look a little bit soft in the early hours here on Monday, as it looks like we’re going to drop below $500 again. AMD has been going straight up in the air for the most part since the beginning of April. And at this point in time, I think we have a situation where we do have plenty of buyers underneath and I do think that they are willing to get involved given enough time, but I also recognize that this is a market that is a little stretched, so I think a pullback is really what we need to see in order for people to take advantage of value.

INTC Technical Analysis

The market for Intel looks soft as well. I do think that there is a significant amount of support in the large, round, psychologically significant figure of $100. The $100 level is a major area that will attract a lot of headlines, and I think a lot of people will watch that very closely. This being said, if we were to break down below the $100 level, then the 50-day EMA comes into the picture to offer potential support as well. I believe the $130 level above is your short-term ceiling.

NVDA Technical Analysis

Nvidia looks like it is going to buck the trend here and gap higher during the open. That does make a certain amount of sense, considering that Nvidia had sold off before, and truthfully, I think it is a little overdone in the short term. When you look at the charts, we pulled back a couple of times. I think this is just a continuation of the overall uptrend and given enough time I do think that we will reach the $235 level again. That being said, I don’t necessarily think that it’s going to be a straight shot higher, but I do think that Nvidia continues to be a stock that a lot of people will watch very closely, as it is the bellwether for most of these companies.

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