A couple of weeks ago, we discussed AI fundamentals in our first podcast episode. Last week, we examined the technical health of various AI-related sectors.
Today, as promised, a look at some of the most prominent names related to AI and how they shape up from a technical perspective.
MSFT: The software giant has been in a strong uptrend all year since its reached its price objective from the February breakout. A likely long-term beneficiary of AI growth in the long run, it’s no surprise we’re starting to see a pullback even after a strong earnings report. A consolidation period, rather than a breakdown, is what we expect presently but we’ll monitor as things develop.
PLTR: The big data analytics company is at the forefront of AI use and development, and still has room to run. The recent consolidation near the middle of its trading band gives it longer-term potential up to its $28 print from August of 2021.
PTC: We can see that in the short-run, this chart is healthy and is not yet extended. Longer-term protections based on chart data not visible below give it a $190 price objective currently.
GOOG: Today’s surge on earnings news completes a bullish triangle. It’s hard to chase stocks that are moving so strongly, particularly if it continues for a few days and moves the stock to the top of its short-term trading band. That said, this pattern suggests longer-term upside is available so it’s a matter of an investor picking a comfortable entry point and sizing appropriately.
AMZN: While the rest of big tech has delivered massive gains this year, the low-margin business of Amazon isn’t being afforded the same treatment. This stock hasn’t come close to regaining its pre-split, July 2021 high of $189. The top of its trading band in the mid $140’s represents a mid-term challenge for a variety of technical reasons.
NVDA: If Nvidia keeps growing to the sky, congrats to those who already own it. For those who don’t, they should approach as though it needs a pause to exhale. This stock is just so extended, technically, that we suspect a lot of big picture fundamental good news is baked in. These trading bands are so wide, we would suggest buyers not consider jumping in until there’s a 3 in front of the price, and even then only in partial positions.
As always, information provided is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Consult your financial professional and make any buy/sell decisions based solely on your own financial situation.
