INTC, AMD and NVDA Forecast – Chip Stocks Mixed in Premarket on Tuesday

INTC Technical Analysis

The market for Intel looks very strong in pre-market trading on Tuesday as we are threatening the $25 level already. With that being said, a part of this, I think, comes down to the fact that SoftBank has come in and infused cash into Intel, and that, of course, has people excited. Furthermore, there’s some uncertainty as to whether or not the United States is going to come in and invest and or claw back some of the profit from Intel. But really at this point, I think a lot of this is just bluster from the president about AI chips.

We’ll just have to wait and see. But at this point in time, we are at the top of the overall consolidation and potentially the accumulation zone. So, we’ll have to wait and see if we can break to the upside and perhaps clear the $26 level, because on that point, then we would go much higher, perhaps reach the $29 level. If we pull back from here, then it’s possible that we could go look into the 200 day EMA right around the $22.62 level. Ultimately, I do believe in buying on the dip in Intel, but right now we are in a bit of a pickle, and it is quite messy.

AMD Technical Analysis

AMD looks like it’s going to open down during the trading session on Tuesday as I think we’re going to continue to see a lot of noisy behavior with perhaps an attempt to get back down to the $171 level. All things being equal though, we’ll just have to wait and see how this plays out. The market is extraordinarily bullish and may have just been a little overbought at this point. So wouldn’t read too much into a pullback, and I do think eventually we try to break above the $187 level, the area that has caused resistance a couple of times in the past.

NVDA Technical Analysis

And Nvidia continues to consolidate as we are just simply going sideways around the $182.50 region, trying to figure out what’s going to make the stock move next. At this point, we had shot so far up into the stratosphere after bottoming out that I think we do need to spend some time going sideways and quite frankly, working off some of the excess froth. Whether or not that actually plays out, we’ll have to wait and see, but I would look at any pullback with suspicion and anticipate buying Nvidia on the first signs of a bounce.

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