Amid ongoing weakness in the semiconductor sector, when will it finally be time to do some buying?
Renowned technical analyst and Action Alerts PLUS team member Helene Meisler took a look at when opportunities could emerge in the chip names ahead of key earnings from Nvidia (NVDA) -) and Marvell (MRVL) -).
FULL VIDEO TRANSCRIPT BELOW:
J.D. DURKIN: Helene, you recently took a look over at semiconductors, a very important space at a very important time. What happened to all of the investor love that these stocks have been kind of accustomed to? And what do you think might be coming next?
HELENE MEISLER: Yeah, back of the end of May when Nvidia had its earnings, and then in June, the SOX, the Semiconductor Index went on to a minor higher high. Basically, if you take a look back, almost the entire period of June, July, and now into August, the semis have gone nowhere despite all the love. I think you had a lot of late comers, and I think you've had a lot of early buyers selling to the late comers.
And we haven't quite gotten to that level where I would say people are concerned about the semis. But they're certainly been selling them for the last few months. I think if you can get another downdraft sometime in the next few weeks on the semis, you might get people saying, oh, no. I've had enough. And then we probably have enough to start buying them again.
J.D. DURKIN: And, Helene, one thing. I wonder how closely do you follow things like the CHIPS Act that passed obviously, last year? I think we are just past the one-year point or so. It's something Chris Versace talks a lot about in terms of-- not that we get into the politics of it, but it is conceived to be a major bipartisan Federal government investment, specifically in semiconductor assembly, manufacturing, testing. How big a piece is that piece of legislation on your radar as you approach semiconductor stocks?
HELENE MEISLER: Not at all. Honestly, because--
J.D. DURKIN: All right.
HELENE MEISLER: --who doesn't know? Who doesn't know? At some point, it gets priced in. And at this point, I would feel everybody sort of knows what-- it's a year into it. There's no more anticipation. So I don't think that that's as big a deal right now as it might have been a year ago.
