Nvidia's Physical AI Move Revitalizes Asian Supply Chain

Although the news is positive, NVDA stock has risen over 9% in the last 24 hours, with its RSI reaching 74, entering overbought territory. This suggests that upward movement may be limited in the short term. Despite a positive MACD, overbought signals and the pace of the recent rally increase the likelihood of some profit-taking or consolidation. Therefore, given the short-term directional uncertainty, a neutral stance appears more appropriate.

The news indicates that Nvidia's push into physical AI is revitalizing the Asian supply chain. ASML, being a critical supplier of chip manufacturing equipment, may benefit from this development. Technical indicators also support the uptrend: RSI at 63.7 is not yet in overbought territory, MACD is above the signal line and positive, and the price is above both the 20-day and 50-day moving averages. Although there was a strong 9.3% rally in the last 24 hours, momentum is likely to continue. However, caution is warranted in the short term due to overbought risks and potential profit-taking.

The news indicates that Nvidia's push into physical AI is revitalizing the Asian supply chain. As one of Nvidia's largest suppliers, TSM directly benefits from expectations of increased demand. Technically, the stock is trading above its 20-day and 50-day moving averages, with an RSI of 58.5 in neutral territory. The MACD line remains above the signal line, maintaining a bullish trend. The recent 3.45% gain at the last close further supports momentum. In the short term, the upward trend is expected to continue, with limited risk as the stock has not yet approached overbought levels.