NVDA, AMD and INTC Forecast – Chip Stocks Looking for More Momentum

NVDA Technical Analysis

The market for Nvidia looks like it is going to open a little higher, but quite frankly, this is a market that is getting somewhat stretched at this point. That being said, I certainly would not go short of Nvidia, and I like the idea of buying dips as they represent value. There is significant support in Nvidia near the $175 level and then again at the $170 level. The market has gone straight up in the air since the bottom in April, basically more than doubling. At this point, it does look like a market that is a one-way trade, and you have to treat it as such. You just can’t get stuck trying to think it’s too expensive and start selling. Rather, you need to think that it’s getting a little pricey. Let’s see if we can find it on sale.

AMD Technical Analysis

Advanced Micro Devices looks like the market is going to open a little higher. And although it is a bit stretched as well, it certainly looks like it might have a little bit more sustainability to the momentum than Nvidia. That being said, these two stocks will almost certainly move in tandem due to the fact that this is all about artificial intelligence. Pullbacks in this market for me are buying opportunities, but it looks like we’re going to gain about $2 right off the bat. I like the idea of buying dips here, with $160 level being the floor in the market at the moment.

INTC Technical Analysis

Intel looks like it’s going to jump in the morning about 30 cents. That is not a huge surprise because, quite frankly, this is a market that’s been in a range for what seems like a lifetime between the $19.50 level and the $25 level, roughly speaking. As we are at the bottom of the range, it makes perfect sense that we would see a little bit of a jump. Ultimately, I do think that we’ll work our way back to the upside, but it is worth noting that the last earnings call was pretty negative. The question is, can Intel find its way back into the favor of Wall Street?

Right now, you could certainly make a little bit of an argument for an accumulation phase that’s been going on for what seems like a lifetime, as volume is higher in this range than it has been for years. But we just don’t have the catalyst. Once we get that catalyst, this will probably be a great stock to own, but for the short term, I think we just got the situation where we’re getting close to the bottom of the range and people were buying from a technical analysis standpoint.

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