HSBC Downgrades AMD to 'Hold' After 77% Surge: Is the AI Chip Rally Ending?

HSBC's downgrade of AMD to 'Hold' could be interpreted as a signal that the AI chip rally may be coming to an end. Although the RSI stands at 52, indicating a neutral zone in technical indicators, the MACD line remains below the signal line, pointing to weakness. The price trading below the 20-day and 50-day moving averages could increase short-term pressure. Despite a 3.16% rise in the last 24 hours, a pullback in the stock can be expected due to the negative sentiment created by the news and technical resistances.

AMD shares have surged 27% in the last 24 hours, pushing the RSI to 81.6, firmly in overbought territory. HSBC's downgrade to 'Hold' reflects concerns that the AI chip rally may be nearing its end. The combination of technically overbought conditions and a institutional downgrade increases the risk of profit-taking and a short-term correction. However, with the MACD still positive and the trend upward, any decline is expected to be limited.

NVDA shares have risen nearly 9% in the last 24 hours, with the RSI reaching 68, approaching overbought territory. While the MACD remains positive above the signal line, HSBC's downgrade of AMD to 'Hold' could cast doubt on the AI chip rally. Short-term upward momentum may persist, but uncertainty from the news and overbought signals in technical indicators make the direction unclear. Therefore, a neutral stance is more appropriate.

Although ASML shares have recorded a strong 9.6% gain in the last 24 hours, the RSI has reached 75, entering overbought territory. HSBC's downgrade of AMD to 'Hold' and concerns that the AI chip rally may be ending could create selling pressure across the sector. Technically, while the MACD remains bullish, overbought conditions increase the likelihood of a short-term correction. Therefore, a limited pullback in ASML is expected over the next 1-3 days.