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NVDA, INTC, and AMD Stocks: A Technical Analysis

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Stock price

A stock price rises when there is more buying activity for the stock and falls when there is more selling activity. The stocks of rivals Nvidia (NVDA), Intel (INTC), and Advanced Micro Devices (AMD) are moving in different directions. INTC is falling, AMD is rising, and NVDA is seeing a slight decline.

 A13_Semiconductors_NVDA_RSI Aug 1 18

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RSI

J. Welles Wilder believes that when there is greater-than-average momentum, there comes a point at which a stock is eventually considered overbought, creating a selling opportunity. He developed the RSI (relative strength index) to measure the point at which a selling or buying opportunity arises. RSI is measured on a scale of 0–100, with less than 30 indicating an oversold status, greater than 70 indicating an overbought status, and 50 indicating no buying or selling trend.

On August 1, Nvidia’s 14-day RSI was 43, indicating that the stock is trading normally and can move in either direction—buy or sell—based on what is reported in the news.

On the other hand, Intel’s 14-day RSI was 27 on August 1, showing that investors have oversold the stock. The RSI states that an oversold stock will rise after it bottoms out, but it seems unlikely for Intel stock in the near term since it breached its 200-day moving average resistance.

Intel’s loss is AMD’s win, which is evident in the stocks. AMD’s RSI was 64 on August 1, which shows that investors are in the buy mode.

Technical analysis takeaway

According to technical indicators, AMD is showing strong growth momentum, whereas Intel is showing weakness in the near term. Nvidia’s stock momentum is slowing down, probably because investors have adopted a wait-and-watch approach for its new product launch.

Next, let’s see how these stock price movements are impacting the three companies’ valuations.

Check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!

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