NVDA, AMD, and INTC Forecasts – Stalling AI Trade Pressures Chip Stocks

NVIDIA Technical Analysis

NVIDIA looks like it’s going to gap lower to kick off the trading session on Tuesday, and it is worth noting that we are hanging around the 200-day EMA. The 200-day EMA, of course, is an indicator that a lot of people will watch to determine the overall trend. Whether or not that actually holds remains to be seen, but it certainly looks as if the whole idea of the artificial intelligence trade is in serious trouble. If we get some type of bounce from here, the 200-day EMA is more likely than not to end up being a massive barrier, but if we can break above there, then the 50-day EMA would be the next technical resistance barrier. I think at this point we’re just trying to build up a reason to go higher.

AMD Technical Analysis

The market for Advanced Micro Devices looks pretty weak as well, and I think ultimately this is a market that is doing everything it can to consolidate and perhaps work off some of that massive move to the upside. That does make a certain amount of sense, mainly due to the idea that the market can’t go in one direction forever, and with this, when you look at the markets, it’s also worth noting right around the $500 level, there seems to be a certain amount of support based on the action here recently.

INTC Technical Analysis

Intel looks like it’s also going to be negative, but again, I think this is more consolidation than anything else. The market is more likely than not going to look at the potential support level of the 50-day EMA as an area that I think a lot of people will be interested in. If we were to break down below there, then the $100 level of course is a potential support level as well. If we were to rally to the upside, pay close attention to the $142 level; that is where we had seen sellers previously. Breaking above that could open up a much bigger move to the upside. All things being equal, it looks like there is a lot of concern about the artificial intelligence trade.

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