Chip stocks opened Wednesday’s session with a cautious tone, reflecting mixed technical signals and broader market uncertainty despite recent sector optimism. Industry giants NVIDIA (NVDA), Super Micro Computer (SMCI), and Advanced Micro Devices (AMD) all exhibited somewhat hesitant trading in the early hours, as investors weighed upbeat macroeconomic data against sector-specific volatility.
NVIDIA (NVDA) remains in focus following a period of robust gains. The stock is currently trading around $143.96, with technical indicators suggesting a continued positive trend in the short term. Analysts highlight support at $139.19 and project a possible trading range between $139.55 and $148.37 for the day.
While the overall outlook is bullish, a close below $138.75 could trigger a pullback toward $134.83, making this a key level to watch. Despite some divergence between falling volume and rising prices, NVDA is seen as a buy candidate in the near term, though traders are advised to monitor for early signs of reversal.
Super Micro Computer (SMCI) is showing signs of fatigue after a volatile run. The stock is forecasted to dip slightly, with a projected price of $42.67 by July 10, 2025, representing a marginal 0.55% decline from current levels.
Technical sentiment is neutral, and the Fear & Greed Index sits at 39, indicating a cautious market mood. With SMCI trading just above forecast levels and volatility remaining elevated, analysts suggest it may be overvalued in the short term, making it a less attractive buy opportunity right now.
Advanced Micro Devices (AMD) is bucking some of the sector’s hesitation, with forecasts pointing to a potential 11.54% upside, targeting $137.05 by July 10, 2025. The stock is currently trading at $121.98, and technical indicators suggest it is undervalued, presenting a favorable entry point for investors. Sentiment is neutral but improving, and the Fear & Greed Index mirrors the cautious optimism seen across the sector.
Broader market sentiment for chip stocks has been buoyed by softer-than-expected inflation data and renewed optimism around US-China trade relations. Both NVDA and AMD posted solid gains in the previous session, reflecting a bullish undertone for the semiconductor industry as a whole.
