Premarket Movers: Nvidia is Still Pushing Aggressively Higher

By Ian Cooper Published Dec 22, 8:48AM EST

Premarket Movers: Nvidia is Still Pushing Aggressively Higher — © lupmotion / Shutterstock.com

After gaining $6.85 on Friday, Nvidia (NASDAQ: NVDA | NVDA Price Prediction) is up another $3.25 in premarket.

The tech giant is still riding the AI story, and a recent Barclays upgrade to a buy rating, thanks to the likelihood of more AI spending.

“We are OW as the company has long-term sustainable growth led by a large lead in GPUs for AI in DC, with further Edge opportunities (autos, robots, etc.) and a competitive moat around a large portion of the market,” said the firm, as quoted by CNBC.

Technically, after finding triple bottom support dating back to September, NVDA is now challenging resistance at its 50-day moving average. However, if it can break above that, which could happen today, we’d like to see NVDA retest $200 next.

Plus, despite AI bubble fears, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030, as noted by Grand View Research.

Advanced Micro Devices

After gaining $12.37 on Friday, Advanced Micro Devices (NASDAQ: AMD) is up another $4 in premarket. Technically, after finding strong support dating back to late November, AMD is just starting to pivot higher.

From its last traded price of $213.43, we’d like to see it challenge its 50-day moving average at around $239.74. AMD is also just starting to pivot from oversold RSI, MACD, and Williams’ %R. Also fueling upside is optimism following AMD CEO Dr. Lisa Su’s meeting with China’s Commerce Minister, where the two spoke about strengthening cooperation.

On her second day of a China trip, Su exchanged views with MIIT head Li Lecheng on “strengthening cooperation in the digital economy and artificial intelligence sectors, according to a statement issued by MIIT, as reported by the South China Morning Post.

Micron

After an explosive few days on earnings and guidance, Micron (NASDAQ: MU) is up another $10.45 a share in premarket.

While Micron is becoming overbought after breaking above triple top resistance, analysts are arguing for more upside. Analysts at Rosenblatt, for example, have a $500 price target on MU with a buy rating, citing accelerating demand for memory and storage thanks to AI.

As we noted the other day, Micron’s EPS of $4.78 beat by 82 cents. Revenue of $13.64 billion beat by $760 million. Moving forward, the company expects to earn between $8.22 and $8.62 per share, with revenue expected to be between $18.3 billion and $19.1 billion for the second quarter. Analysts were looking for $4.78 per share on revenue of $14.3 billion.

Fueling further upside, Micron says supply-demand issues could create a $100 billion high-bandwidth memory (HBM) market by 2028 – a milestone projected to arrive two years before the company’s previous outlook.

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About the Author Ian Cooper →

Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.

He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.

Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.