Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting Club
PRO
LivestreamMenuChipmakers couldn’t make a meaningful move higher this week, even after Nvidia posted blockbuster results. The chipmaker’s revenue for the fiscal second quarter soared 85% year over year to $81.62 billion. Earnings per share beat estimates as well, and Nvidia issued strong forward guidance to boot. That, however, wasn’t enough to drive a breakout in the rest of the semiconductor sector. Wolfe Research technical strategist Rob Ginsberg said that the State Street SPDR S & P Semiconductor ETF (XSD) “continues to struggle” below its 21-day and 50-day moving averages. Indeed, the fund closed at $500.26 on Thursday, below its 21-day average of $513.65, according to FactSet data. The chip ETF is also underneath its 50-day average of $532.25. Similarly, the VanEck Semiconductor ETF (SMH) is “flirting with channel resistance that has been in place since June,” Ginsberg wrote. The SMH closed Thursday’s session at $573, below its 50-day moving average of $581.71. Nvidia itself didn’t break out either. Despite climbing 8.7% on Thursday on the back of those strong results, the Jensen Huang-led company remains below its May 14 all-time high of $236.54. If Nvidia runs out of steam and can’t run back to that record price, it could mean trouble for the broader market. For example, traders at Susquehanna pointed out that Nvidia on Thursday single-handedly put “the SPX in positive territory even as roughly 70% of its constituents decline[d].”Read More
About The Author
