Nvidia Warning? Maybe.
Check this out.
Most readers probably already know that I have been very positive on both Advanced Micro Devices ($AMD) and Intel ($INTC). AMD literally for years and INTC for this year at least. Most readers likely also know that I remain long Nvidia ($NVDA), but don’t write on it very often. Looking at The Sarge-folio, AMD is a top-five name in terms of weighting, INTC is a top-10 name and NVDA is a top-15 name. That’s the way that I have had them weighted for some time now.
Nvidia
NVDA continues to trade within my Pitchfork model. This morning, the stock found support at its 21-day EMA as, I think, swing traders came to the rescue. Still, this is a dangerous spot as swing trades are notoriously fickle and if that line fails, how far away can a test of the 50-day SMA be? I still have a $290 target on NVDA, but I am starting to lose confidence in this one.
AMD
It looks to me like AMD may be starting to consolidate, which is healthy. The recent move was nearly parabolic in nature and needs to be digested. I am very comfortable with my current $790 price target.
Intel
INTC also seems to be setting up for some consolidation, which would be welcome. Here, too, the chart is very positive. My $178 target may be a little aggressive, but this stock still may be underrated. Lip-Bu-Tan is the best CEO this company has had in many, many years.
Position: Long AMD, INTC and NVDA equity.
