AI Spending to Reach $600 Billion: Investors Will Evaluate Returns

The projected rise of AI expenditures to $600 billion is a bullish signal for AI‑centric companies such as GOOGL. However, the current RSI hovers near 73 and the MACD remains below the signal line, indicating a short‑term overbought condition. Over the next one to three days, the price may exhibit a modest rebound, but a sharp rally is unlikely; a more stable, gradual move is expected.

While the news highlights the scale of AI spending, it implies that investors remain cautious about returns. NVDA shares have fallen 5% in the last 24 hours, with the RSI near neutral territory at 42. The MACD is negative but approaching the signal line, indicating weakening momentum. The price is trading near the 20-day moving average, suggesting a short-term search for equilibrium. Given the difficulty in determining a clear short-term direction, a neutral stance is recommended.

AMD has gained positive momentum with a 2.8% daily increase, and its RSI at 55 indicates neither overbought nor oversold conditions. Although the MACD line remains below the signal line, the price trading just below the 20-day SMA suggests a short-term resistance zone. The headline, stating that AI spending could reach $600 billion, may boost confidence in the sector, but the warning that investors will assess returns calls for caution. Overall, an upward move is possible in the short term, but profit-taking may occur if the SMA20 resistance at $350 is not broken.

The news points to growth in artificial intelligence spending, which could serve as a positive catalyst for semiconductor companies such as TSM. Technical indicators also support this view: the RSI is at 57, in neutral territory, the MACD is above its signal line, and the price is trading above both the 20-day and 50-day moving averages. The 1.6% gain in the last close indicates positive short-term momentum. However, as investors are expected to assess returns, cautious optimism is warranted.