NVDA, AMD and INTC Forecast – Microchips Have a Wild Premarket Session

NVDA Technical Analysis

The pre-market trading for Nvidia is extraordinarily strong as we are jumping higher by a little over $5 a share and it looks like we’re going to wipe out a couple of days’ worth of losses pretty quickly. At this point, we’ll have to keep an eye on the $185 level. It’s an area that has been like a hard ceiling, but it’s obvious that Nvidia is looking to go much higher. It’s under investigation in China for antitrust issues, but the reality is that some of the chips that China desperately wants will have to come from Nvidia.

So, while China is in the situation where it is trying to break away from US AI chip makers, which one would expect, the reality is there is no alternative, at least not right now. And I do believe that is part of what we’re seeing here. It’s also worth noting that we had bounced from the 50 day EMA. So, it’ll be interesting to see if that’s enough to continue the overall uptrend.

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AMD Technical Analysis

Advanced Micro Devices or AMD is struggling just as much as Nvidia is soaring to the upside. A lot of it comes to the same conclusion that Chinese markets might be a problem for AMD. We’ll just have to wait and see. Either way, this is a market that is still very bullish, and the 200 day EMA sits just below the $140 level. I think that’s your floor. Short-term pullbacks should be buying opportunities, and this drop might be the beginning of something that you can look at as a potential opportunity. If we were to break above the $165 level, then the market could go looking at the $180 level.

INTC Technical Analysis

Intel is going to skyrocket at the open from what we see, as the $5 billion in video investment into Intel is going to have a major influence on what happens next. All things equal, short term pullbacks probably are buying opportunities, but really, you can’t be careful and chase a move that is roughly a 50 % gain right off the bat. I would anticipate there’s a little bit of a vacuum here, but it does suggest that Nvidia just bottomed out. And if that’s the case, this is a market that could go all the way up to 50 given enough time.

Again, though, chasing it right away is probably a good recipe for disaster. So, by all means, it’s probably time to be a little bit cautious here. As far as timing it, a little bit of a pullback offers a lot of value. And shorting, obviously, to fill the gap, some people will try that, as it is a reckless strategy indeed. Ultimately, Intel looks like it’s about to soar.

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