US Restricts Equipment Exports to China's Second-Largest Chipmaker

The news that the US is restricting equipment exports to China's second-largest chipmaker could have a short-term negative impact on GOOGL. This restriction may affect the chip supply chain used in Alphabet's cloud and artificial intelligence businesses. With the RSI at 73.7 in overbought territory, the likelihood of a correction following the recent rally increases. The MACD falling below the signal line indicates weakening momentum. A pullback toward the $384.4 level (SMA20) can be expected in the short term.

The news increases geopolitical risks for the chip sector in which NVDA operates, raising concerns that export restrictions could negatively impact the company's revenues. Technical indicators already present a weak outlook; the RSI is below 40, and while the MACD is below zero and above its signal line, momentum remains weak. The price is trading just below the 20-day moving average and well below the 50-day average. The 5% decline over the past 24 hours indicates continued selling pressure. In the short term, due to this negative news and technical structure, a continuation of the downward movement can be expected.

The news targets a Chinese chipmaker that competes with AMD, potentially enhancing AMD's competitive advantage. Technical indicators show the stock rose 4.1% in 24 hours, with the RSI at 57.7 in neutral territory. Although the MACD remains below the signal line, the price trading above both the 20-day and 50-day moving averages supports a short-term bullish trend. However, the impact of the news may be limited, and the market could focus on broader geopolitical developments. Therefore, I assess a moderate level of confidence in the upside.

The news that the US is restricting equipment exports to China's second-largest chipmaker increases geopolitical risks for semiconductor companies such as TSMC. While technical indicators present a neutral outlook (RSI at 51, price near SMA20 and SMA50), such restrictions could trigger supply chain uncertainties, potentially creating selling pressure in the short term. The MACD remains below the signal line, indicating weak momentum. Despite a slight 1% gain from the last close, the negative impact of the news may prevail in the coming days.