NVDA, INTC and AMD Forecast – Chip Stocks Mixed After Nvidia Earnings

NVDA Technical Analysis

The Nvidia market is going to open a bit lower during the trading session on Thursday after the overnight earnings call came out. The earnings were positive. There was a little bit of a surprise in the earnings number, as well as the revenue number, however, the thing is that perhaps it is a scenario where it just wasn’t great enough. Nonetheless, think that you have a situation where the market is more likely than not going to bounce. And I think we are going to threaten the $185 level.

If we can break above there, then I think we’ve got real traction ahead. The 50 day EMA is approaching the $170 level. So perhaps that is an area worth watching if we do get a bit of a pullback. But really at this point in time, I think Nvidia has enough juice to continue to go higher, and I would expect it to break out sooner or later. We’ve had a nice run higher, we’ve consolidated, it looks like we are at least thinking about going higher. It’s probably only a matter of time before the breakout occurs.

INTC Technical Analysis

Intel is going to open slightly higher on Thursday as we are approaching the top of a well-known consolidation, possibly an accumulation pattern. It is worth noting that volume is starting to pick up. And of course, the US government is involved now, so that ought to be interesting to see how that resolves. If we can break above $26, it’s likely that we’ll go looking at the $30 level, possibly $32 level, based on a measured move in a market that, quite frankly, has been extraordinarily predictable up to this point.

AMD Technical Analysis

AMD looks like it’s going to be relatively flat in the open, maybe down a few cents, but nothing worth mentioning. As we are at the bottom of a consolidation area, it’ll be interesting to see if the $160 level can hold. The $160 level is an area that’s been important more than once, and I think you’ve got a situation where it’s likely to continue to be so. The 50 day EMA is getting to the $160 level as well, offering even more support. On the upside, the $187 level has acted as a barrier a couple of times in the past. So, I think that could be your target eventually.

Earnings were good. Nvidia wasn’t the all-star that everybody thought it was going to be, so there might be a little bit of a knock-on effect over here, but nothing that I would be overly concerned about. We had a nice run up in this market. We’ve gone sideways. So now the question is, how long do we need to continue to work off any froth? Keep in mind that this time of year is fairly quiet as far as volume is concerned. So that might make this a little lackluster, at least for the moment.

For a look at all of today’s economic events, check out our economic calendar.