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Why You Should Watch Nvidia, Intel, Other Chip Stocks Wednesday

January 3, 2018 | By | Reply More

Nvidia (NVDA) and Intel (INTC) continued to rise in extended trading, signaling tests of key levels in Wednesday’s session. The broader chip sector made significant gains in Tuesday’s stock market trading. That’s a good sign for the market rally, because chips are usually key drivers of the S&P 500 index and Nasdaq composite.

X Intel climbed 0.9% to 47.28 in late trading after closing up 1.5% to 42.89 on Tuesday. Intel is approaching a 47.40 cup-base buy point after briefly breaking out in late December.

Nvidia, which has boomed as its chips have expanded from PC gaming to autonomous driving and artificial intelligence, closed 3% higher to 199.32, just below its 50-day line. After the close, Nvidia advanced 2% to 203.40, suggesting a move above that key support.

Keep in mind that extended trading does not always translate to how stocks will act in the next regular session.

However, Nvidia would be joining a club. After weeks of most chipmakers and especially chip-equipment makers stuck below their 50-day lines, the Philadelphia Semiconductor index and 12 chip stocks regained their 50-day line on Tuesday. That includes Broadcom (AVGO), Taiwan Semiconductor (TSM) and Teradyne (TER).

Strong November chip sales figures from the Semiconductor Industry Association were a catalyst for Tuesday’s gains.

Nvidia, Broadcom, Taiwan Semiconductor and Teradyne are all in flat bases.

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