Political theater has been on full display this week. But for tech investors interested in Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM) and iRobot (NASDAQ:IRBT), presentations showcasing their latest and greatest efforts at the Consumer Electronics Show (CES) and price charts are what matter most. With that said, let me explain more about these CES stocks.
The market is laser-focused on the world stage and escalating conflict between the United States and Iran; To say the least, the tension is palpable. The reality is the next headline could mean today’s conflict takes a turn for the worse or not, based on POTUS’ latest “all is well” tweeted proclamation.
Knowing when and how the uncertainty overseas actually plays out is all conjecture at this point. Closer to home, though, some clarity is being promoted in select CES stocks.
From CES presenters Intel (NASDAQ:INTC) to Micron (NASDAQ:MU), and even Apple (NASDAQ:AAPL) after a 28-year absence, CES is obviously a big deal in 2020. However, it is what’s happening off and on the price charts of a couple other semiconductors and one robotics stock where investors could be cleaning up in the months ahead.
CES Stocks to Buy: Advanced Micro Devices (AMD)
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Advanced Micro Devices is the first of our CES stocks to buy. The increasingly hot semiconductor outfit just got a bit hotter after unveiling its Threadripper 3900X CPU and 7nm Zen 2 mobile CPU and promises of an even bigger 2020.
The presentation had Wells Fargo noting AMD stock continues to execute on a “competitively strong and broadening client CPU/APU roadmap” and TechRadar’s Bill Thomas stating AMD gave Intel a proper thrashing.
Off the stage and on the price chart, the presentation resulted in a “sell-the-news” style reaction in AMD stock on Tuesday; And for good reason. Shares of Advanced Micro Devices are overbought after a massive 70% rally since October. Additionally, AMD stock briefly eclipsed its all-time-high set in 2000 over this past week.
AMD Stock Strategy: Monitor this CES stock for buying on a pullback. The first technical area of interest resides at a steep trendline near $46. However, given the stiff rally, I wouldn’t advise going all-in — but leave room to accumulate on further weakness. In a slightly less bullish environment, AMD stock could challenge a more durable support zone from $38.50 – $42.50 before a bottom is formed.
Qualcomm (QCOM)
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Qualcomm is the next of our CES stocks to buy. The communications-chip giant bombarded attendees with updates on the company’s mobile computing and automotive systems. The crown jewel of the day, however, was its announced 5G wireless-enabled processor; It’s a milestone for Qualcomm.
The processor is an expansion beyond the company’s smartphone business and marks the first chipset of its kind. It will be used in Lenovo’s Yoga 5G, a 2-in-1 device which rolls out this spring.
Technically, QCOM stock enjoyed a very constructive-looking 2019, as shares muscled their way into a more defined and convincing uptrend. Furthermore, the price action continues to look good for 2020. Currently, this CES stock is forming a small, two-plus month cup-with-handle pattern.
QCOM Stock Strategy: Buy Qualcomm if shares can stage a breakout of the handle through $90.46. I’d also recommend using this week’s low as the pattern’s line in-the-sand for exiting and taking numerically, and return-pleasing profits at $100.
iRobot (IRBT)
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iRobot is the last of our CES stocks to buy. Best known for its fleet of disc-shaped, robotic floor cleaners, iRobot was presented with an Innovation Award for its Roomba s9+ vacuum at this year’s conference. The company also announced a partnership with IFTTT to drive smarter home integrations, such as allowing consumers to spruce up the homestead while on-the-go using an app.
Technically, IRBT stock was hit hard this past year due largely to trade war concerns and tied “at-the-hip” weaker guidance. But, 2020 is looking brighter. The large correction finished 2019 by establishing a large, monthly chart engulfing candlestick. Wedged between its lifetime 62% to 76% Fibonacci levels, a 10-year support line and backed by a bullish stochastics setup, this CES stock is in position for a major bottom to form.
IRBT Stock Strategy: Buy IRBT stock above $52.95. The December high is taken out to confirm a longer-term bottom is in place. Known for its vomit-inducing volatility, size the position accordingly and then look to mop up profits of your own in 2020 and beyond.
Investment accounts under Christopher Tyler’s management currently own positions in Advanced Micro Devices (AMD) and its derivatives but no other securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits
