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JPMorgan has a few key price levels it’s watching on the biggest artificial intelligence stocks in the market. The transition to early fall is a seasonally weak period for U.S. equities that could weigh on technology and growth names. With any swing against bellwether stocks such as Nvidia and Microsoft likely to dampen broad market gains, investors can look for clues in the strength or weakness of the AI-themed leadership of the current bull market. Jason Hunter, JPMorgan head of technical strategy, in a recent note to clients used “a bottom-up approach” to find evidence of exhaustion in prominent AI leaders that led the spring and summer rally. Take a look at the technical setup for a few of the stocks Hunter looked at below: Nvidia Nvidia shares lost about 3.5% on Friday after Broadcom ‘s strong quarterly results reflected growing competition in the chip market. The stock has been a drag on the broader market over the past month, losing more than 8%. Shares are up 23% for the year. “Nvidia is struggling to move back above the 171.50-174.15 cluster of tactical resistance and has tentatively broken down from a short-term top pattern,” Hunter said. “Continued price action below that resistance would favor an extension to the first zone of medium-term support at 147-153. We suspect material buying interest upon a first test of that support zone.” NVDA 1Y mountain Nvidia stock performance over the past year. Alphabet Shares of the Google and YouTube parent climbed about 9% this week after Alphabet won a best-case outcome in a Justice Department antitrust case , when a court ruled that Google can keep its Chrome browser. The stock is up nearly 23% this year. “Alphabet Inc. presents the strongest bull trend dynamics of any stock in this note,” Hunter wrote. “The trend remains firmly intact while above the 204-212 support zone, which includes the early-2025 peak, recent gap and short-term trend line,” Hunter said. “The rally has already exceeded the March-June base pattern measured move objective and 2024-2025 trend line. Given the trend dynamics, we suggest managing long risk with a trailing stop, currently set below the aforementioned support levels. A downside break would turn our attention to early-summer breakout levels near 180.” GOOGL 1Y mountain Alphabet stock performance over the past year. Meta Platforms JPMorgan’s technical analysis of Instagram parent Meta suggests that the stock is headed toward a slowdown. “Meta Platforms Inc. exhibits signs of trend deceleration as the stock repeatedly stalls near the Sep 2024 internal trend line (now 812.24) but maintains a positive trend bias while above key support at 675.37-705. A downside break would signal a bearish medium-term trend reversal and turn our attention to the 592-601 support zone. On the upside, longer-term trend line resistance sits at 909.82,” the bank wrote. META 1Y mountain Meta stock performance over the past year. The stock is up about 28% year to date. Oracle Oracle has outperformed many of its tech peers, soaring nearly 37% this year. But the maker of database management software has retreated 10% over the past month. “Oracle has the most short-term chart damage of the stocks in this note after its breakdown below 243 tactical support and then the 229 Jul-Aug top pattern neckline … the setup favors a further retracement of the spring-summer rally with three support layers,” Hunter wrote. ORCL 1Y mountain Oracle stock performance over the past year. Microsoft Microsoft has rallied more than 18% year to date. But the stock is lower by almost 7% over the past month as the broad market has churned sideways and concern has grown around the pace of Azure growth. “Microsoft tries to rebase following the setback from the late-July exhaustion gap. Tactically, the stock needs to clear 518-520 resistance for bulls to regain traction,” Hunter wrote. “On a medium-term basis, the chart does not show lower-frequency trend exhaustion or a distribution pattern. We suspect the stock will find support near the 475 Apr 38.2% retrace and 468 July 2024 peak if the pullback persists. The rally has already reached longer-term trend line resistance.” MSFT 1Y mountain Microsoft stock over the past year. Amazon It’s unclear if Amazon’s price action represents a consolidation or a distribution pattern and an impending longer-term double top, according to JPMorgan. “Given Sep-Oct seasonality, we would be cautious about assuming it’s the former and at least manage long risk with a trailing stop below the 213-215 key support zone. A downside break would leave the stock vulnerable to a setback toward 190-193 medium-term support. The next level of resistance overhead rests at 252-256,” Hunter said. The owner of the dominant e-commerce platform in the U.S. is about & % this year, lagging the broad market as well as most of its ” Magnificent 7 ” tech peers. AMZN 1Y mountain Amazon stock over the past year.
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