NVDA, INTC and AMD Price Analysis – Microchip Stocks Look Ready to Go Higher

NVDA Technical Analysis

NVIDIA looks like it’s going to gap higher to kick off the session on Tuesday as the buyers are back. This is a very explosive stock, obviously, and it should not be a huge surprise to think that we are going to continue to see more of a buy on the dip mentality. Nvidia continues to see the $135 region as a bit of resistance, but when you look at the longer term, we have seen a massive turnaround from the $90 level at one point.

And now I think it would make a certain amount of sense if Nvidia stayed in a consolidation area to work off some of this excess froth. That being said, it has been announced that they have a China specific AI chip that they’re going to mass produce. So that takes some of the pressure off the company in that aspect. And of course, we have the 50 day EMA crossing above the 200 day EMA recently, which is a technical signal of strength.

INTC Technical Analysis

Intel looks like it’s going to gap to the upside as well, although not as impressive as we had seen in Nvidia. However, Intel has been in a consolidation range for quite some time. So, I think it does make a certain amount of sense that Intel finds itself trying to bounce again, as this looks to me like an attempt to add accumulation at an extreme low.

We’ll just have to see. Intel has had major issues over the last couple of years. So this could be a value play, although one would have to think that it is most certainly lower down the food chain than many of the other microchip stocks.

AMD Technical Analysis

AMD looks like it’s going to gap higher as well, perhaps running higher to test that crucial 200 day EMA, which sits near the $120.75 level. If we can break above that, it clears AMD to go much higher, and recently we have seen the market blow through a major downtrend line, so now the question is, will we continue to see upward momentum? I suspect that we are in the process of trying to change the overall attitude, but whether or not we enter a massive uptrend I think it is also still to be determined. What I do like about this chart is that when we broke that downtrend line, we had massive volume. That’s a good sign. So, with a jump higher in pre-market trading, it does look like we’ll probably challenge the 200-day EMA before it’s all said and done.

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