AI Spending to Reach $600 Billion, Big Tech Investors to Assess Returns

Although the news highlights growth in AI spending, NVIDIA (NVDA) stock fell 2.1% in the last close, with its RSI approaching oversold territory at 36. While the MACD remains negative, it may have crossed above its signal line, potentially signaling a short-term recovery. However, trading below the 20-day SMA (197.92) and 50-day SMA (204.22) keeps the technical outlook weak. Despite positive news, technical indicators do not provide a clear direction, so a sideways trend can be expected in the short term.

The news highlights the growth potential in the sector, noting that artificial intelligence spending is expected to reach $600 billion. AMD is well-positioned to directly benefit from this trend with its AI chips. Technical indicators also support this positive outlook: the RSI is at 60.8 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 upward trend is expected to continue in the short term, but cautious optimism should be maintained as the market is not yet in overbought territory.

ASML could be positively impacted by news that AI spending is set to reach $600 billion, as the company supplies critical lithography equipment for AI chips. Technical indicators support this view: the RSI at 59.4 is in neutral territory but trending upward, the MACD is above its signal line and positive, and the price is above both the 20-day and 50-day moving averages. The 0.4% gain in the last 24 hours suggests continued momentum. However, major tech investors may look to lock in profits, increasing the risk of short-term profit-taking, so the bullish outlook should be approached with caution.

The news may positively impact semiconductor companies such as Broadcom as artificial intelligence spending grows. Technical indicators suggest the stock is in a short-term uptrend: the RSI at 63 is not approaching overbought territory, the MACD is above its signal line and positive, and the price is above both the 20-day and 50-day moving averages. The 2.85% gain in the last close also supports momentum. However, uncertainty remains over whether the market has fully priced in the news and due to overall market conditions, so the bullish outlook can be expressed with moderate confidence.