NVDA, AMD and INTC Forecasts – AI Tech Chip Stocks a Little Soft

NVDA Technical Analysis

NVIDIA has the look of a market that will probably gap lower to kick off the session here on Monday, but after the explosive move we’ve seen over the last couple of days of people running right back into the artificial intelligence trade, that’s not a huge surprise, and quite frankly, I think it probably offers a little bit of an opportunity if you’re patient enough. I suspect the 50-day EMA is right at the $203.86 level, and the $200 level could offer a bit of support. I think, given enough time, we probably try to get back to the highs again, but a lot of this noise is going to be influenced by external pressures.

AMD Technical Analysis

AMD looks like it’s also going to gap a little bit lower at the open. I’m looking for the gap from a couple of sessions ago to offer support all the way down to the $520 level. All things being equal, I think a lot of people will be looking for signs of a bounce to get on the right-hand side of the V as this longer-term trend plays out. It’s been straight up in the air and then just kind of worked off some of the excess noise. I have no interest in shorting this market. I do think eventually it will continue much higher.

INTC Technical Analysis

Intel looks as if it could gap a little bit lower as well, as it is in a fairly tight consolidation that it’s been in for about 4 or 5 sessions. To me, it appears that the $100 level will continue to offer support as it is a large, psychologically significant figure and an area that a lot of people had been paying attention to previously.

Ultimately, I think you have a situation where value hunters will continue to defend this stock, but that doesn’t mean that it’s going to be easy sailing. A bit of consolidation between $100 and somewhere around $135 makes sense after the impressive move from April. We are getting close to the bottom of that range, so I’ll be looking for a bounce to take advantage of.

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