To The Moon

Fuelled by the explosive growth of emerging markets such as artificial intelligence and electric vehicles, the semiconductor industry which produces the vital components that power these technologies is poised to grow into a massive trillion-dollar industry by 2030.

NVIDIA

Companies are pouring tens of billions of dollars into building out AI infrastructure and services, making the beneficiaries notably Nvidia close to a sure thing in terms of their growth prospects. The chipmaker's results next week will provide further clarity on AI demand, and could vault the shares back into record territory.

Nvidia daily chart

As shown in the chart above, NVIDIA share price retraced continuously for weeks since mid June. In early August, when the market crashed, Nvidia seems to find its support at EMA200 as highlighted in Orange Circle in the chart. In mid August, another bullish signal was observed, in which the stock broke out from its Orange coloured downtrend line for the first time since July. Therefore, I remain bullish for Nvidia $NVIDIA Corp(NVDA)$ next week, as long as it continues to stay above its EMA10 short term support. 

AMD

AMD agreed to buy server maker ZT Systems in a cash and stock transaction valued at USD 4.9 billion, adding data centre technology that will bolster its efforts to challenge Nvidia. 

AMD daily chart

For AMD, its share price is much weaker as compared to NVIDIA. A critical bearish sign in AMD chart in which we observe that AMD failed to sustain above its EMA200 trendline (green coloured line). Since April this year, AMD never failed to stand above to this EMA200. Even it retraced towards this line, the share price rapidly rebounded but it was no longer the case this time. The share price stayed well below EMA200 for almost one month, and this week, it managed to stand back above its EMA200 support line. For such, I will change my usual bearish view on AMD $Advanced Micro Devices(AMD)$  to bullish from next week onwards. 

Intel 

Intel has kept pace with AMD in terms of performance in the PC CPU market, but at the expense of power efficiency. The company's past manufacturing stumbles continue to impact its competitiveness. Arrow Lake and the new Intel 20A process could close the efficiency gap this year. 

Intel daily chart

As a dead cross occurred between EMA50 and EMA200 since end April, a mid to long term bearish movement for Intel is unavoidable. The share price began to rebound in early July but unfortunately it started to retrace upon touching EMA200 (green coloured line) resistance. A very bad news in early August with its disappointing earnings, the share price collapsed with a huge gap down. No point to rush into this stock for long-term. You may consider a oversold rebound play in short term but it is quite risky. I tend to give it a bullish vote $Intel(INTC)$  as it seems like a short term bottom is formed at 18.91 USD.

TSM

Semiconductor giant TSMC broke ground on its first European factory in the eastern German city of Dresden on Tuesday in a major deal for the European Union as it looks to shift key supply chains onto the continent and secure production of chips.

TSM daily chart

Similar to most of the other semiconductor stocks, TSM retraced significantly since early July. After that, it quickly rebounded after it touched somewhere near 140 USD which is also its EMA200 EMA support. Now, TSM even stood back above all its EMA lines. For such, I am bullish for TSM $Taiwan Semiconductor Manufacturing(TSM)$  and believe it might trend higher and challenge its new high pretty soon, somewhere near 193.58 USD.

SOXL

SOXL is an ETF that offers 3x daily long leverage to the PHLX Semiconductor Index, making it a powerful tool for investors with a bullish short-term outlook for semiconductor equities. Investors should note that SOXL's leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SOXL can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.

SOXL daily chart

A massive hit on SOXL index due the significant pullback of semiconductor stocks. Bloody approximately 60-70% of correction from recent peak. The worrying thing was that, SOXL failed to rebound at EMA200 (green coloured EMA line), and further plummeted this week. Since early August, following the recovery of semiconductor stocks, I believe SOXL will follow and stand back above EMA200 next week, bullish vote for SOXL $Semiconductor Bull 3X Shares(SOXL)$ ! It will be great if SOXL can stand firmly back above its EMA200. 

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