NVDA, AMD and INTC Forecast – Chips Look Ready to Rally

NVDA Technical Analysis

NVIDIA looks like it is going to jump higher during the open on Friday, which does make a certain amount of sense with Sovereign Wealth Funds announcing overnight that they were throwing $100 billion at NVIDIA for investment. With that being the case, it certainly throws a lifeline to a company where people were starting to question whether or not it would ever make any money. At this point, we were right at the bottom of the range, with $170 offering a floor.

That does make sense that we would bounce here anyway. So, all things being equal, I think Nvidia just got a lifeline, at least for the next bounce. Keep in mind, though, volume might be a little erratic over the next several trading sessions, but either way, I don’t sell Nvidia regardless.

AMD Technical Analysis

AMD looks like it is going to jump slightly at the open, and I would stress the word slightly. This is probably more or less a knock-on effect, and the market is trying to recognize the $200 level as a significant support level. If we do break down from here, we can see a round trip from the gap back in October all the way down to somewhere around $170. If that happens, I suspect there will be buyers down there, but right now, AMD looks like it is trying to hold its own. I think the longer we stay in this consolidation area, the better off it will end up being.

INTC Technical Analysis

Intel looks like it’s going to join the party as well, jumping slightly at the open. Whether or not that’s a big deal remains to be seen, but you can see the market has been pretty bullish, pretty choppy at this point. I think we’re trying to find some type of stable area from which to move next. It’s been a pretty wild ride, and I think that continues to be the case. You can see just how volatile this stock has been, but I would point out that it continues to threaten the upside, and that’s the most important takeaway here.

This is a market that you still have to look at as positive and pullbacks as potential buying opportunities.

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