To The Moon

Semiconductor stocks rallied following the strong earnings and forecasts by the big players like NVIDIA, AMD, TSMC, etc... Today, let's look into a few famous semiconductor stocks through technical analysis.

NVIDIA

Nvidia dominates the AI chip market, and this has helped earnings to climb in the triple digits in recent years. AI may be the hottest investment theme right now, and this could continue. After all, analysts say the AI market could be worth more than 1 trillion USD by the end of the decade. So it's no surprise that Nvidia shares have skyrocketed that much.

Nvidia daily chart

NVIDIA continued to rally following its strong earnings result. Until the end of last week, we began to see some weakness in AI related stocks. On Thursday, a bearish engulfing candle was formed in NVIDIA daily chart, followed by another confirmation red candle on Friday. For such, I am bearish for $NVIDIA Corp(NVDA)$  and believe the share price will undergo more correction next week. 

AMD

US Officials have slowed the issuing of licenses to chipmakers such as Nvidia and AMD for large-scale artificial intelligence accelerator shipments to the Middle East, while officials conduct a national security review of AI development in the region. The goal is to give Washington time to develop a comprehensive strategy around how the advanced chips will be deployed overseas.

AMD daily chart

For AMD, its share price is much weaker as compared to NVIDIA. The stock consolidated for the past 2 weeks after broke out from the orange coloured downtrend line drawn in the figure above. With the recent pullback in AI themed stock but seems like AMD is quite consistent in its share price, meaning a strength in buyer which might cause the share price to trend higher in short term, $Advanced Micro Devices(AMD)$ .

Intel 

Amid CEO Pat Gelsinger's ambitious effort to restore the company to its former glory, Intel has found itself caught up in global forces: geopolitical competition with China, the AI boom, and President Joe Biden's efforts to reshore manufacturing. Gelsinger is positioning Intel as a national champion and it has been rewarded accordingly as the company has received more CHIPS Act funding than any other. 

Intel share price

A mid to long term bearish sign for Intel without any doubt. However, if you look at short term, there.might have some rebound chance for Intel. The share price seems to form a short term bottom at around 30 USD and able to hold well at this position. With the market strong reversal trend last Friday, I believe the market will remain bullish next week, therefore similar to $Intel(INTC)$  which might rally together with the market after forming a potential near term bottom at 30 USD.

TSMC

Taiwanese contract chipmaker TSMC, a major supplier to Apple and Nvidia (NVDA.O), on Thursday forecasted an annual revenue growth of 10% in the global semiconductor industry, excluding memory chips. TSMC has estimated second-quarter sales may rise as much as 30% as it rides a wave of demand for semiconductors used in AI applications.

TSM daily chart

Quite a healthy chart for TSM. In general, the overall mid term trend still under an obvious uptrend. The recent pullback was testing the support at around 146.54 USD after broke out in early May. From technical point of view, it is very high chance that $Taiwan Semiconductor Manufacturing(TSM)$  will rebound at this neckline support. Backed by the strong market demand, there's no reason that TSM will become downtrend in short term right?

SOXL

SOXL, consistently among the most actively-traded ETFs, seeks three times daily exposure from an index of 30 of the largest U.S.-listed semiconductor companies, including manufacturers and providers of equipment and services focused on the industry. The fund's index uses market cap-weighting, with the top five securities capped at 8% and the remaining securities at 4%. 

SOXL daily chart

Interesting chart for SOXL last night! We can notice an obvious Hammer formation in the latest candlestick. The hammer candlestick occurs when sellers enter the market during a price decline. By the time of market close, buyers absorb selling pressure and push the market price near the opening price. Hammer candlesticks indicate a potential price reversal to the upside. For such, I believe the correction is over and $Semiconductor Bull 3X Shares(SOXL)$  will trend higher next week! 

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