Nvidia, AMD and SMCI Test Key Levels as Rates Stay High

NVDA Technical Analysis

The premarket for Nvidia is slightly positive after a somewhat negative couple of days. Ultimately, we have bounced from the $215 level, and it looks like at the open we might try to continue to bounce from there.

It’s worth noting that the ex-dividend date is on the 10th, so that might have a little bit of an influence. But ultimately, this is a growth stock, and that’s what people like is earnings calls like we got the other day. The problem is that interest rates remain elevated, and that does put a little bit of a drag on tech at times. Nonetheless, if the AI trade picks back up, Nvidia is one of the heavyweights.

AMD Technical Analysis

AMD looks like it is going to be ever so slightly lower at the open according to premarket trading. $450 continues to be a major support level. And of course, again, it’s that higher rate story. The question about artificial intelligence and profitability continues to be an issue as well.

Those who are technical traders may start to look at this as a potential rounding top, and we’ll just have to wait and see how that plays out. Some traders swear by them; some traders don’t believe them. We’ll see.

But certainly some lackluster performance as of late, although we haven’t broken through major support, so there is still that as well. It’s almost like it’s been in a holding pattern. And let’s be honest here, from the end of March to the end of June, we saw a massive, more than doubling of this stock, so we have to put things in perspective.

SMCI Technical Analysis

Super Micro Computer looks as if it will be a little bit positive during this session at the open. We have been consolidating for a while. It had a blowout earnings call the other day, a couple of weeks ago. And now it looks like we are ranging between $35 and $40.

$40 above has been a significant resistance barrier. We are getting close to getting that 50-day EMA crossing above the 200-day EMA, kicking off the so-called golden cross. So technical traders will like that as well.

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