Semiconductor and AI 🧠 - Technical Review
South Korea's SK Hynix said on Thursday its high-bandwidth memory (HBM) chips used in AI chipsets are almost sold out for 2025, after their 2024 chips were fully booked.
Being Nvidia supplier and the world's second-largest memory chipmaker, the company highlighted that 2025 HBM volumes were almost sold out amid a rapid expansion of AI technology into a wider range of on-device applications such as smartphones, PCs, and automobiles. The growth in semiconductor seems to be promising in future. Let's look into a few AI and semiconductor related stocks.
NVDA
Nvidia currently boasts an estimated 80% share of the market for AI-powering processors.
The company used last month's GTC event to unveil the newest iteration of its lineup, the Blackwell GPU architecture. This architecture could command a 40% premium to the current range for H100 chips, which go for between 30,000 and 40,000 USD each. Nvidia is scheduled to report first-quarter earnings on May 22.
Nvidia daily chart
Nvidia seems to regain its uptrend momentum recently. It successfully breaks out from its downtrend line earlier this week. Moreover, the share price stands back above to the EMA50 line. The pullback seems to be over and I believe$NVIDIA Corp(NVDA)$
AMD
Advanced Micro Devices stock was heading lower after the company reported first-quarter results that slightly edged guidance and Street estimates.
For the quarter, AMD posted revenue of $5.5 billion, up 2% from a year ago, just above the midpoint of the company's guidance range at $5.4 billion.
AMD daily chart
How about AMD chart? From the diagram above, it seems like AMD is reaching the EMA200 support, challenge the support twice for the past weeks. Usually, this line acts as a super strong support and usually most of the stocks will rebound here, else the uptrend is finish. The stock might continue to consolidate but I remain bullish for $Advanced Micro Devices(AMD)$
PLTR
Palantir, one of the forerunners of modern artificial intelligence, is scheduled to report the results of its fiscal 2024 first quarter after market close on Monday. Palantir has long been a leader in the development of AI, but investors will be watching closely to see if the company can continue to capitalize on recent demand and whether the current strong interest will continue.
PLTR daily chart
PLTR, forms a short term uptrend now after breakout from its downtrend parallel channel. Next week earnings will be the key deciders, I have confident in the company fundamental and the recent breakout from the downtrend parallel channel make me give a bullish vote for $Palantir Technologies Inc.(PLTR)$
Intel
Intel, once the biggest and most valuable U.S. chip company, has been surpassed by numerous rivals in recent years due to a series of missteps. The shares plummeted further last week following disappointing earnings.
Intel is now the worst-performing tech stock in the S&P 500 this year, while rival chipmaker Nvidia is the second-best performer in the index.
Intel daily chart
Technical chart a full bearish trend for $Intel(INTC)$
SOXL
If we look at the overall semiconductor index, represented by SOXL, the share price has a strong technical rebound after touching EMA200 trend line support.
SOXL daily chart
As we can see from the chart above, SOXL rebounded twice when touching the critical EMA200 line, and now it is challenging the downtrend line. I believe with the positive earnings from the semiconductor co mpanies recently, $Semiconductor Bull 3X Shares(SOXL)$
Do you like AI stocks? The correction is over and ready for another wave of rebound? Which is your top choice of semiconductor stocks?
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NVIDIA Corp (NVDA)
Business and Industry: NVIDIA is a leading technology company that specializes in designing and manufacturing graphics processing units (GPUs) for gaming, AI, and data centers. The company's GPUs are widely used in AI applications, making NVIDIA a key player in the AI industry. The AI market is expected to grow rapidly in the coming years, driven by the increasing adoption of AI technology in various sectors such as smartphones, PCs, and automobiles.
Latest Earnings and Forecast: NVIDIA's latest earnings report for Q4 2024 showed an EPS of $4.98, with a gross profit margin of 75.97% and a net profit margin of 55.58%. The company has a positive earnings forecast, with estimated EPS of $24.84 for 2025 and $31.18 for 2026. The forecasted gross income for 2025 is $111.92 billion, and the forecasted EBIT is $71.68 billion.
Recent Trends: NVIDIA's stock price has been showing an uptrend recently, breaking out from its downtrend line earlier this week. The current stock price is $887.89 (as of May 4, 2024). The capital flow data for the past five days shows mixed inflows and outflows.
Analyst Viewpoints: Analysts have a positive outlook for NVIDIA, with a mean target price of $1008.90. The low target estimate is $478.40, and the high target estimate is $2762.12. The majority of analysts recommend buying or holding the stock.
Intel (INTC)
Business and Industry: Intel is a leading semiconductor company that designs and manufactures microprocessors for various applications, including AI. However, Intel has been facing challenges in the market and is currently the worst-performing tech stock in the S&P 500 this year. The company is facing strong competition from rivals like NVIDIA.
Latest Earnings and Forecast: Intel's latest earnings report for Q1 2024 showed an EPS of -$0.09, with a gross profit margin of 41.00% and a net profit margin of -2.99%. The company has a positive earnings forecast, with estimated EPS of $1.96 for 2025 and $2.72 for 2026. The forecasted gross income for 2025 is $62.89 billion, and the forecasted EBIT is $9.29 billion.
Recent Trends: Intel's stock price has been in a full bearish trend, and a death cross has formed between the EMA50 and EMA200, indicating the end of the uptrend in the mid and long term. The current stock price is $30.90 (as of May 4, 2024). The capital flow data for the past five days shows mixed inflows and outflows.
Analyst Viewpoints: Analysts have a mean target price of $40.31 for Intel. The low target estimate is $17.00, and the high target estimate is $68.00. The analyst recommendations for Intel are mixed, with some recommending buying, holding, or underperforming the stock.
Direxion Daily Semiconductors Bull 3x Shares (SOXL)
Business and Industry: SOXL is an exchange-traded fund (ETF) that seeks to provide daily investment results, before fees and expenses, of 300% of the performance of the PHLX Semiconductor Sector Index. The ETF provides exposure to the semiconductor industry, including companies involved in the design, manufacture, and distribution of semiconductors.
Recent Trends: SOXL has shown a strong technical rebound after touching the EMA200 trend line support. The current stock price is $38.97 (as of May 4, 2024). The capital flow data for the past five days shows mixed inflows and outflows.
Analyst Viewpoints: There is no specific analyst target price or recommendation available for SOXL.
Please note that the above analysis is for informational purposes only and should not be considered as investment advice. It is important to conduct thorough research and analysis before making any investment decisions.
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