3 Soaring Semiconductor Stocks Still Worth Buying

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Semiconductor stocks - 3 Soaring Semiconductor Stocks Still Worth Buying

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The mid-March monsoon striking stocks took many sectors below pivotal support levels. And despite last week’s valiant rebound attempt, many remain submerged in short-term downtrends.

3 Soaring Semiconductor Stocks Still Worth Buying
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But not tech stocks. No, the technology sector is doing just swell, thank you very much. Last week’s launch was sufficient in carrying the tech-heavy Nasdaq 100 to fresh all-time highs. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) tagged $132.74 before retreating slightly into the close on Friday.

And while the likes of Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) receive much of the limelight, it’s semiconductor stocks that have been so darn consistently bullish over the year. With the recent market chop, many of these chipmakers have developed quality chart patterns.

Feast your eyes on these three soaring semiconductor stocks that are still worth buying.

Semiconductor Stocks to Buy: Nvidia (NVDA)


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Source: OptionsAnalytix

Momentum favorite, Nvidia Corporation (NASDAQ:NVDA), tops today’s list. Adrenaline junkies have been all over the California-based semiconductor company for years now. And who can blame them? The stock is up some 374% over the past two years.

Two-sided action has snuck on NVDA in recent months, giving its price chart a decidedly more neutral look of late. But let’s be honest; the pause was desperately needed considering its monster overbought status.

Since its deep retracement in February, NVDA stock has been on the mend. Last month’s ascent carried the semiconductor back above its 50-day moving average, and an excellent high-base has formed over the past two weeks.

A break above $110 should signal the next leg up. Upon triggering, consider buying the May $110/$120 bull call spread for around $3.50.

Semiconductor Stocks to Buy: Advanced Micro Devices (AMD)


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Source: OptionsAnalytix

Next up is Advanced Micro Devices, Inc. (NASDAQ:AMD). At over 430%, its two-year ascent has put NVDA to shame. Despite some recent volatility, AMD stock remains technically sound. Currently, it sits above all major moving averages in bullish fashion. That means it sits in an uptrend across all time frames.

The past month of consolidation has taken on the form of a symmetrical triangle. These pausing patterns crop up from time to time in the midst of uptrends when digestion is needed to work off overbought pressure. If Friday’s high-volume pop is any indication, it appears the next advance for this semiconductor stock is upon us.

AMD implied volatility is still pumped enough to consider selling some premium. If you’re looking for a high-probability play, consider selling the May $13 puts for 70 cents.

Semiconductor Stocks to Buy: Micron (MU)

Source: OptionsAnalytix

Micron Technology, Inc. (NASDAQ:MU) rounds out today’s trio with a pattern that is the least mature of the bunch. Since vaulting higher on earnings March 24, MU stock has been treading water.

Due to the large up-gap, MU stock remains a touch overbought. Some further backing and filling would be a welcome development for those afraid to chase here. It would also create a nice high-base pattern to trade a breakout from.

If you think MU eventually pops to new heights, consider buying the May $29/$32 call spread for around $1.

As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/04/3-soaring-semiconductor-stocks-still-worth-buying/.

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