Super Micro, Tesla, Advanced Micro, Intel

The buy the dip crowd failed to make an appearance Tuesday and the tech stocks they’ve been pumping up suffered the damage. Some of the big names tanked lower and could not find the usual support. At some point the Wall Street algorithms will find the courage to move back in, but it wasn’t today.

Tech stocks with more sellers than buyers

First, for an overall look at the entire sector, here’s the daily price chart for the Technology Select Sector SPDR Fund:

This exchange traded fund has 69 holdings that include hardware, software, semiconductor names among other types of technology stocks. The chart shows four straight sessions of selling with the last two below the 50-day moving average. The early January low of near $225 may be a likely support area.

Super Micro Computer (NASD: SMCI)

The computer hardware maker looked promising again with the mid-February blast up to above $65 but that is now called into question. The stock’s slide since then has taken it back below the 200-day moving average. The fact that the 50-day moving average appears to be turning up is worth following. Super Micro has a market cap of $26.67 billion.

Tesla (NASD: TSLA)

The drop of 8.39% comes with big volume. The price is nearing the level of the up trending 200-day moving average. The early November gap up may be a target for traders. The same thing goes for the late October gap up. Note how the 50-day moving average is turning downward. This price chart has the look of a head and shoulders pattern, not typically a good sign. Tesla’s market cap is $973 billion.

Advanced Micro Devices (NASD: AMD)

The semiconductor stock dropped to a new low on Tuesday. The 50-day moving average in early August had crossed below the 200-day moving average and has remained below it since then. Advance Micro Devices has a market cap of $168 billion. The price-earnings ratio is 103. The new low and the unrelenting slide must be a disappointment to those who purchased the stock as an “AI” name.

Intel (NASD: INTC)

The semiconductor maker took off higher in mid-February and it looked like it might fill the huge early August 2024 gap down. Those hopes faded with today’s -5.27% slide back below the 200-day moving average. This is the second close below it. Intel’s market cap is $99.55 billion. The company pays a .50% dividend. This is another name involved in the AI craze but without great stock performance over the past few months.

Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

More analysis and commentary at johnnavin.substack.com.