NVDA, INTC and AMD Forecast – Chip Stocks Trying to Bounce in Premarket

NVDA Technical Analysis

The market for Nvidia looks like it’s trying to rally a bit in pre-market trading, which makes sense given that Nvidia now represents about 14% of the NASDAQ. As such, many investors are attempting to pick the stock market up off the floor. The $200 level continues to generate some noise, and most certainly, $210 will as well. Even if we fall from here, both the 50-day EMA and the uptrend line should provide strong support for Nvidia.

Keep in mind that the next earnings call isn’t until the 19th, so we have little time before new catalysts emerge. Since Nvidia represents a significant portion of most passive portfolios, it makes sense that many investors are willing to buy it at nearly any price. Under this type of pressure, we’re likely to see buying opportunities emerge, and I continue to favor a buy-on-the-dip approach.

INTC Technical Analysis

Intel looks set to open slightly positively based on pre-market trading, but I believe the $38.50 level is acting as a magnet for price. After a solid rally over the last several weeks, the stock may need to digest those gains, which is perfectly normal. I also view this as a buy-on-the-dip opportunity, though I’m not as bullish on Intel as I am on Nvidia. Still, I have no interest in shorting this market.

AMD Technical Analysis

Advanced Micro Devices looks as though it will open lower, but that’s not surprising given how stretched it’s been. There are several potential buying zones worth watching around $230 and possibly $240. I’m waiting to see a dip followed by a bounce, then buying on the right-hand side of that V-shaped recovery. Patience will likely pay off here. It’s worth noting that AMD’s earnings and revenue did beat expectations slightly, but not to the degree the market may have hoped for. As the disappointed short-term money exits, I plan to take advantage of the broader uptrend.

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