Major Chinese Tech Firms Race for Huawei AI Chips After DeepSeek V4

Although news of increased demand for Huawei AI chips among Chinese tech companies may provide some support, Tencent's (0700.HK) short-term technical indicators present a weak outlook. The RSI is approaching oversold territory at 34.9, while the MACD remains below the signal line and in negative territory. The stock is trading below its 20- and 50-day moving averages, confirming a short-term downtrend. Despite the positive news, the weak technical structure and a 1.1% decline over the past day suggest that selling pressure may persist. Therefore, further downside movement is expected in the near term.

The news indicates that Chinese tech giants are competing for AI chips, which could increase demand for major players like Alibaba. Technically, the stock rose 5.8% in the last close, with RSI at 58.5 in neutral territory and MACD positive above the signal line. Trading above the 20- and 50-day moving averages supports short-term momentum. However, as it is not yet in overbought territory, there is potential for further upside, but caution is advised.

The news indicates that Chinese tech giants are competing for artificial intelligence chips. While this is positive in the long term for companies like BABA with cloud and AI investments, it may create short-term uncertainty. Technical indicators point to overbought territory (RSI 73, MACD high), increasing the likelihood of a short-term correction. Profit-taking may occur following the 7% rise in the last 24 hours. Therefore, it is difficult to give a clear signal for the short-term direction.

The news indicates rising demand for AI chips from Chinese tech giants, which is positive for chipmakers like NVDA. Technical indicators also point to a strong uptrend: although the RSI at 68 is approaching overbought territory, momentum continues, the MACD is above the signal line and positive, and the price is above both the 20-day and 50-day moving averages. The 4.3% increase in the last 24 hours supports short-term momentum. However, the high RSI increases the risk of a short-term correction, so excessive optimism should be avoided.