TSMC Rises on Surge in AI Chip Demand

Although the news headline is positive, technical indicators present a weak picture in the short term. The stock lost 4.8% in its last close, and the RSI at 39 is near the sell zone. The MACD line is below the signal line and in negative territory, indicating weak momentum. The price is trading below both the 20-day and 50-day moving averages. Therefore, the impact of the positive news may be limited, and no clear signal has emerged regarding the market's direction.

The news indicates that the increase in artificial intelligence chip demand is a positive catalyst for NVDA. Technical indicators also support this view: the RSI at 66.7 is not approaching overbought territory, the MACD is positive, and the stock is trading above its SMA20 and SMA50. The recent 4.7% gain at the last close suggests momentum could continue. However, in the short term, overbought risks and overall market conditions may limit the upside.

The news indicates that AMD's main supplier, TSMC, has risen due to increased demand for artificial intelligence chips. This can be interpreted as a positive demand signal for AMD. Technically, the price is above the 50-day moving average and the RSI is in neutral territory, but the MACD remains below the signal line. Despite the 8.6% rise in the last 24 hours, I believe the short-term momentum could continue.

The news highlights that increasing demand for artificial intelligence chips has boosted TSMC. Since ASML is one of TSMC's largest suppliers, this positive development may also reflect on ASML. Technically, the RSI is at 51.7, indicating a neutral zone, while the MACD is below the signal line but the gap is narrowing. Although the price closed below the 20-day moving average (1540), it remains above the 50-day moving average (1501). There is potential for an upward move in the short term, but the negative MACD warrants caution.