INTC, NVDA and AMD Forecast – Chip Stocks Look to Rally on Friday

INTC Technical Analysis

Intel has the look of a market that’s going to go higher in pre-market trading, as we are gapping to the upside. After that injection of good news that Nvidia was in fact going to throw money into Intel. And of course, now we’re starting to see AMD and Intel cooperate on AI chips. This looks like a market that’s probably got some distance to go. We do find ourselves in an area that is significant resistance right around the $38 level, based on market memory.

But really, at this point, Intel is just screaming to the upside and I think you’ve got a situation where dips continue to be buying opportunities. It is difficult to chase it all the way up here. I think a lot of this comes down to your time frame. If you’re an investor and you’re looking at hanging on, you just hold your nose and buy, I guess.

Nvidia Technical Analysis

Nvidia looks like it is slightly positive in pre-market trading, building on that less than impressive follow through after the gap on Thursday. So, we had a nice gap higher on Thursday and just went sideways. I think we’re going to try to tilt a little bit to the upside. Clearly Nvidia is a bullish market. You don’t want to get short of it. And I do think it’s probably only a matter of time before Nvidia gets to the $200 level. I don’t think it happens tomorrow. I think you’ve got a situation where you continue to buy dips in Nvidia as it is the market favorite.

AMD Technical Analysis

Advanced Micro Devices looks like they are going to try to break out to the upside. We had that nice gap on the Thursday session and a little bit of follow through here, just like in Nvidia. But in this situation, if we can break above the $170,75, we could find ourselves going to the $185 level. Short term pullbacks, I think, are nice buying opportunities in a market that quite frankly looks very bullish overall.

Keep in mind that Friday does not have the non-farm payroll announcement, so that might smooth things out. We may have a gentle and slightly positive overall tone to the markets, as we don’t have to worry about the influx of massive volatility. Again, buying on the dips in really all three of these stocks makes sense.

For a look at all of today’s economic events, check out our economic calendar.