AI Frenzy Sends Chip Stocks Soaring: Dot‑Com Bubble Concerns Resurface

NVDA has delivered a strong performance with a 9% increase over the past 24 hours, trading above its 20‑day simple moving average. The relative strength index (RSI) sits around 68, indicating an overbought condition, yet the MACD remains in an uptrend, providing supportive momentum. The news highlights the current AI mania while also raising concerns about a potential dot‑com bubble, which could introduce short‑term volatility. Analysts expect the price to continue rising over the next one to three days, though short‑term corrections remain possible due to overbought signals.

In the last 24 hours, a strong 27% rise has been observed, indicating that the RSI is in the overbought region at 81.6. While the MACD and SMAs support the upward trend, the overbought signal increases the likelihood of a short‑term correction. AI‑fueled frenzy stocks are rising, yet concerns about a dot‑com bubble keep investors cautious. Consequently, a slight correction or consolidation is expected within 1–3 days. With a cautious approach, no major move is anticipated in the short term.

TSM’s latest close fell below its 20‑day moving average, and the MACD indicator is below its signal line, signaling short‑term downside pressure. A 3.68% rise over the past 24 hours suggests a brief rebound, but technical indicators indicate that this uptick is unlikely to be sustainable. While AI‑driven sentiment lifts many stocks, concerns over a potential dot‑com bubble keep investors cautious. Consequently, a modest correction over the next 1–3 days is anticipated. However, the RSI remains above 50, which could prevent a full swing to the downside, implying that a sharp decline is unlikely and a mild volatility range is expected.

AVGO’s price is above the 20‑ and 50‑day moving averages, and the MACD sits above its signal line, indicating a strong short‑term bullish trend. The RSI hovers around 60, close to the overbought region but not yet excessive, suggesting the price could experience a brief correction. Following the “AI frenzy” news, investors hold both positive and risk‑laden expectations, which may generate short‑term volatility. Concerns about a dot‑com bubble could create selling pressure, especially in the near term, yet the fundamentals remain bullish. In conclusion, the market possesses both upside and correction potential in the short term, making it difficult to pinpoint a clear direction.