Chip Stocks Forecast – Will Nvidia Earnings Trigger the Next Semiconductor Breakout?

NVDA

Nvidia looks like it is going to rally a bit during the trading session here on Friday in pre-market trading, with the $215 level offering support, as it did offer resistance previously. The question now is whether or not the market can continue to bounce from here, reaching towards the $225 level. If the market were to break down below the $215 level, I see support at $210, where there was a gap as well.

Keep in mind, earnings are Wednesday of next week, and that’s always a big deal for Nvidia. Wall Street will be watching, as it’s one of the most widely held tech stocks out there in the AI space.

INTC

Intel looks like it’s going to rally a little bit in pre-market trading as well at the 50% Fibonacci retracement level from the bigger move. We are starting to see a lot of choppiness, and it is worth noting that we are sub-$100. The market reaching towards the $100 level would not be a surprise, just simply because it’s been so important over the last couple of months. If the market breaks down, then I’ll be watching the $80 level where we had bounced from previously.

AMD

AMD looks like it’s going to rally a bit in pre-market trading as well, with the $450 level offering a little bit of support. It looks like it’s trying to form some type of consolidation pattern after that big run higher so many months ago. Ultimately, this is a market that is up well over 100% over the last 6 months or so. So, a couple of months of sideways action really isn’t overly surprising to me. A pullback from the extreme high isn’t surprising to me either.

This is a market that is churning and burning off some of that excess froth that was built into it. Nonetheless, it doesn’t look bearish. The earnings call was pretty good here just a couple of weeks ago. And now we are beyond that; it’ll be interesting to see if there are any knock-on effects from the Nvidia call next week. But as things stand right now, it looks like it’s got pretty decent support underneath it if the last couple of weeks are to be believed.