Monday, January 4, 2021

Nvidia and AMD could fall victim to their own success, but that would create a buying opportunity, trader says

 Here is the link. 

Two of this year’s best-performing semiconductor stocks have hit a wall.

Chipmakers Nvidia and AMD have diverged from their competitors this month, falling nearly 2% and 0.5%, respectively, while the VanEck Vectors Semiconductor ETF (SMH) has climbed nearly 4.5%.

The lag could make for a near-term buying opportunity, JC O’Hara, chief market technician at MKM Partners, told CNBC’s “Trading Nation” on Wednesday.

“This is a market where you want to own leadership. That’s the only way for you to outperform a benchmark,” he said. “When we look at the 19 semiconductor names within the S&P, we find leadership in Nvidia and AMD.”

As of Wednesday’s close, Nvidia was sitting on a year-to-date gain of nearly 123.5% and AMD was up over 101%.

S&P 500 semiconducts year-to-date performance

  1. NVDA 120
  2. AMD 98
  3. TER  73
  4. QCOM 73
  5. LRCX 64
  6. SMH 54
  7. IPGP 53
  8. KLAC 45
  9. XLNX 45
  10. MXIM 43
  11. AVGO 42

No comments:

Post a Comment