4-Stock Elliott Wave Focus: $NVDA $SMCI $AVGO $AMD — Where I’d buy on current targets
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## Four Stock Elliott Wave Focus: $NVDA, $SMCI, $AVGO, $AMD — Where to Buy on Big Wave 4 Corrections
Elliott Wave Theory is a powerful tool in the hands of technical analysts and traders. It helps identify the natural rhythm of market prices, characterized by five-wave uptrends followed by three-wave corrections. In this article, we will focus on four prominent stocks: NVIDIA ($NVDA), Super Micro Computer ($SMCI), Broadcom ($AVGO), and Advanced Micro Devices ($AMD). We’ll analyze their current Elliott Wave positions and discuss potential buy points during their Wave 4 corrections.
### NVIDIA ($NVDA)
**Wave Analysis:**
NVIDIA has been a standout performer in the tech sector. The post-split Wave 3 rally, starting around $39, saw an impressive surge all the way to $141. Currently, NVIDIA is undergoing a Wave 4 correction.
**Current Status:**
The Wave 4 correction appears to be nearing its end. A full 0.382 retracement of the move from $39 to $141 targets the $100-$102 range, which aligns closely with current levels. A deeper 0.382 retracement, considering a broader market view, could push the target to the $90-$95 range.
**Buy Recommendation:**
In my opinion, the $100 level is a significant support zone and could be challenging to break below. This makes it an attractive entry point for long-term investors. If the price dips to the $90-$95 range, it would present an even more compelling buying opportunity, assuming market conditions remain favorable.
### Super Micro Computer ($SMCI)
**Wave Analysis:**
Super Micro Computer has completed a five-wave uptrend and is now in a substantial Wave 2 correction. This correction is characterized by an ABC zigzag pattern, which often retraces a significant portion of the preceding wave.
**Current Status:**
The worst-case scenario for SMCI suggests another plunge, targeting the $480-$500 range. This level corresponds to an A=C projection within the zigzag pattern, a common target in corrective waves.
**Buy Recommendation:**
I would be a buyer at the $480-$500 range. This area represents a major support level where the corrective phase could find its bottom, providing a good entry point for long-term investors looking to capitalize on the next bullish wave.
### Broadcom ($AVGO)
**Wave Analysis:**
Broadcom has also experienced a robust Wave 3 rally, starting at $80 and reaching $185 post-split. The stock is currently in the midst of a Wave 4 correction, which typically retraces a portion of the preceding wave.
**Current Status:**
The 0.382 retracement level for Wave 4 targets the $135-$140 range. Broadcom is trading near this range, indicating that the correction might be close to completion.
**Buy Recommendation:**
I would recommend buying Broadcom in the $135-$140 range. This level serves as a strong support and could mark the end of the Wave 4 correction, setting the stage for the next upward wave.
### Advanced Micro Devices ($AMD)
**Wave Analysis:**
Advanced Micro Devices is undergoing a significant Wave 2 correction. This correction could potentially be severe, with a worst-case scenario projecting an A=C target in the $100-$110 range.
**Current Status:**
The competition from NVIDIA, which dominates the graphics processing unit (GPU) market, adds pressure on AMD. Despite the potential value at lower levels, this competition makes AMD a less attractive buy compared to its peers.
**Buy Recommendation:**
Given the fierce competition with NVIDIA, I would not recommend buying AMD, even if it reaches the $100-$110 range. The market dynamics and competitive landscape do not favor AMD at this point, making it a riskier investment compared to other stocks analyzed here.
### Conclusion
Elliott Wave Theory provides valuable insights into the natural ebb and flow of market prices. By analyzing the current Wave 4 corrections in NVIDIA, Super Micro Computer, Broadcom, and Advanced Micro Devices, we can identify strategic entry points for long-term investments.
- **NVIDIA ($NVDA):** The $100 level is a significant support and an attractive buy point. A dip to $90-$95 would present an even better opportunity.
- **Super Micro Computer ($SMCI):** The $480-$500 range is a strong support area and a good buying opportunity.
- **Broadcom ($AVGO):** Buying in the $135-$140 range is recommended as it marks the likely end of the Wave 4 correction.
- **Advanced Micro Devices ($AMD):** Due to intense competition from NVIDIA, AMD is not a recommended buy, even at lower levels.
Investors should remain vigilant, considering both technical analysis and broader market conditions when making investment decisions.
