The semiconductor sector continues to lead the technology rally in early 2024, with the SOX index showing remarkable strength. Key players like NVIDIA, AMD, and Intel are driving unprecedented growth in AI chip demand.

Key Points

  • SOX index up 45% YTD, outperforming broader tech
  • AI chip demand driving revenue growth
  • Supply chain improvements boosting margins
  • Institutional accumulation increasing

Technical Setup Analysis

Major semiconductor stocks are displaying bullish patterns:

  • NVIDIA consolidating above $780 support
  • AMD breaking out from cup-and-handle pattern
  • Intel showing relative strength in enterprise segment
  • Broadcom testing new highs on AI prospects

Volume Profile Analysis

Trading volumes indicate strong institutional interest:

  • Above-average volume on breakouts
  • Healthy accumulation on dips
  • Dark pool activity suggesting large positions
  • Options flow showing bullish sentiment

Risk Assessment Framework

Key factors to monitor:

  • Geopolitical tensions affecting supply chains
  • Interest rate impact on growth multiples
  • Competition in AI chip market
  • Technical support levels for key stocks