"The PHLX Semiconductor Index climbed nearly 50% from March lows in an 18-session parabolic rally before ending Monday, then dropped 3.4% Tuesday on a Wall Street Journal report that OpenAI missed internal revenue and usage projections."
"Peterson noted that the story is going to obviously kill momentum, at least for the next couple of weeks, and will create overhead supply, meaning everyone who bought these chip stocks at all-time highs on Friday and Monday, which is bearish near-term."
"NVIDIA shares are up 26.69% over the past month, and the 14-day RSI ran from 34.0 on March 30 to a peak of 76.3 on April 27 before easing to 65.4 on April 29."
"AMD is the most stretched of the three, with the stock up 71.96% over the past month and 250.94% over the past year, and RSI peaked at 88.94 on April 24, an extreme reading."
The PHLX Semiconductor Index surged nearly 50% in 18 sessions before a 3.4% drop following a report on OpenAI's missed projections. Nathan Peterson advises caution, indicating that the recent rally may create overhead supply and bearish conditions for active traders. NVIDIA and AMD have shown significant gains, with NVIDIA's revenue projections remaining strong despite the recent downturn. However, AMD's stock is considered overextended, with extreme RSI readings and high valuations, suggesting potential risks for investors.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]