NVDA, INTC and AMD Forecast – Chips Struggling in Early Tuesday Trading

NVDA Technical Analysis

The pre-market hours for Nvidia have been a bit rough and it looks like we are going to just roll over and play the same range we’ve been playing for a while. After all, that does make a certain amount of sense because we have an earnings call coming up on the 25th, so next week. And of course, everybody is worried about the AI story now because it turns out math is a thing and the cost of data centers are starting to become an obvious serious problem.

The reality is the 200-day EMA probably is where the market gets interesting again, right around that $170 level. This is not a long-term trade; this is a market that you’re just trading back and forth at this point.

INTC Technical Analysis

Intel, of course, is soft as well. It looks like it’s going to go looking at the 50-day EMA, and the market bouncing from that 50-day EMA could be a nice opportunity. I certainly wouldn’t short this market; it’s far too strong, and I think that probably ends up being the case long term. As things stand right now, the overall market just doesn’t seem to be any interest. This goes far beyond chips; the overall market itself is just kind of flat at the moment. I wouldn’t read too much into this other than maybe we need to pull back towards the 50-day EMA and test for support.

AMD Technical Analysis

AMD is likely to test the $200 level during the session and then possibly the 200-day EMA. This is a market that has a very well-defined range, but what does concern me about this chart is that we didn’t bother bouncing that far this time. A lot of times, that’s a sign that something ugly is about to happen.

The counterpoint to that is we saw that back in December, and then we did it twice, and then raced higher. I wouldn’t short this market; that’s not what I’m getting at, but we could fall down to the $172 level to fill the gap from back in October and still technically be in the same situation. I think buying the dips probably is the way to go here, but I don’t see anything compelling at the moment.