In a recent interview with the "Investing With IBD" podcast, John Bollinger, President at Bollinger Capital Management, shared his insights on the current sentiment surrounding semiconductor giants Nvidia (NVDA) and Intel (INTC), indicating a potential consolidation for Nvidia and potential returns for Intel.

According to Bollinger, Nvidia's stock has been on a rapid upward trajectory, but its momentum is now dwindling. Analyzing Nvidia's weekly price chart overlaid with Bollinger Bands, a measure of price volatility, Bollinger suggests that the stock may have surpassed its peak and is due for a period of consolidation. "Nvidia's period of big gains are way behind it," he stated.

Bollinger Bands, consisting of upper and lower trend lines around price bars, serve as crucial indicators for technical traders, helping determine whether a stock is overbought or oversold. Bollinger's analysis indicates that while Nvidia may experience a temporary slowdown, Intel, often considered an underdog in the semiconductor sector, has the potential to make a comeback.

Comparing Intel to blue-chip stock IBM, Bollinger highlights that both companies could transition from income generators to vehicles for capital gains. He believes that Intel, currently a component of the Dow Jones Industrial Average, has substantial upside potential ahead of it. However, Bollinger also acknowledges ongoing macro pitfalls such as the chip wars and trade relations between the United States and China, cautioning investors to remain mindful of these factors.

Despite the potential risks, Bollinger sees reasons to be optimistic about Intel's fundamentals. He believes that the company's capabilities may be appreciated by the market over the long term, particularly noting Intel's efficient construction of fabs (semiconductor fabrication plants).

While Intel's stock has shown promise, Investor's Business Daily (IBD) emphasizes that it is currently extended from a proper buy point. However, the stock had a breakout from a base with a 40.07 buy point, accompanied by above-average volume on November 15. In just 11 days, the stock has surged by 11% above the buy point.

As the market continues to navigate the dynamics of the semiconductor sector, Bollinger's insights into Nvidia and Intel provide valuable perspectives for investors. Further analysis and detailed insights from John Bollinger can be found in this week's episode of the "Investing With IBD" podcast, offering a comprehensive understanding of both Nvidia and Intel stocks, as well as other market insights.