Semiconductor Forecasts – AI Stocks Test Support Ahead of Fed

Nvidia Technical Analysis

Nvidia looks like it is going to be slightly positive based on pre-market trading on Wednesday, as we are bouncing from the 200-day EMA. The market looks very lackluster is probably the word I would use over the last 36 hours or so, but that is actually an improvement considering how much selling pressure we had seen during the Monday session.

With the Federal Reserve on tap later today, that will obviously cause some volatility in the interest rate markets, and that could cause some noise in microchips, but also keep in mind this has been a worldwide sell-off as of late, as traders are starting to question the artificial intelligence trade. Nvidia, of course, being a big part of that, has seen a lot of noise. Bouncing from the 200-day EMA is a good technical signal, though.

AMD Technical Analysis

The market for AMD is ever so slightly positive in pre-market trading, as it looks like the $450 level is, in fact, trying to offer support. It is worth noting that the market gapped lower on Tuesday. There could be an attempt to fill that gap. From a technical analysis standpoint, traders will often look at that, but it is going to be interesting to see how this plays out. Ultimately, this is a market that has seen a lot of volatility as of late. We are at the bottom of a larger consolidation area, so that certainly should be watched.

INTC Technical Analysis

Intel looks like it is going to try to rally a bit early during the trading session. Ultimately though, Intel is still in the midst of a pretty vicious pullback. For what it is worth, there is a big gap just below where we are, and we are getting pretty close to the 61.8% Fibonacci level at basically $80. So it will be interesting to watch this one. This one is pretty high up on my watchlist for the day.