NVDA, INTC and AMD Forecast – Chip Stocks Look Soft in Early Friday Trading

NVDA Technical Analysis

Nvidia looks set to continue seeing some selling pressure here. This is a market at the forefront of the AI bubble that we are currently in, and at the forefront of any movement in the market whatsoever. After all, Nvidia basically is the market these days, and as a result, the fact that we are going to open about $5 down should continue to weigh on the overall markets.

Nvidia has plenty of support all the way down to the $165 level, and I will be looking for a bounce to take advantage of. It is interesting because the 200-day EMA is racing toward that $165 level, so that could offer a bit of a floor as well. Expect volatility, but there is almost always somebody out there willing to get involved in Nvidia. Adding more fuel to the fire, we have a Wednesday earnings call next week, which will be the most important in the stock market.

INTC Technical Analysis

Intel looks like it is going to open pretty poorly, maybe down about three and a half dollars, but the 50-day EMA is in that neighborhood, so maybe technical traders will be interested. This is a market that gapped and shot straight up in the air, so you are likely to be better off waiting for a bounce to get involved, simply because you cannot know what happens next. With that being the case, this looks like a market where you are waiting for some type of clarity to jump back in. I would not short this market. It has been far too strong, and I believe it eventually tries to recover. But you have to let it do its thing, let it jump back, perhaps offering more value, and then perhaps get in at that point.

AMD Technical Analysis

AMD looks like it is going to open up pretty poorly as well, although it is probably in better shape than the other two stocks in this analysis. At this point, I think you are waiting to see whether the 50-day EMA or perhaps even $225 comes into the picture to offer support. If this market were to fill the gap from the run-up on October 3rd, it has a long way to go, and that is the one thing I am somewhat concerned about. The earnings were fairly good. We have not had earnings for quite some time, so a little bit of a pullback probably has more to do with the overall markets themselves. I do think there is a buying opportunity here, but you need to see the market fight back in order to get involved.

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