Anthropic in Talks to Use Microsoft's AI Chips

The news signals a positive development that could increase demand for Microsoft's AI chips. Technical indicators present a neutral-to-positive picture: RSI is balanced at 51.5, MACD is in positive territory although below the signal line, and the price is above both the 20-day and 50-day moving averages. Despite a 1.13% decline in the last 24 hours, this news could trigger a short-term recovery. However, the MACD being below the signal line warrants caution.

The news is more of a sectoral development rather than a direct catalyst for GOOGL. Technical indicators point to weakness: the price is below the 20- and 50-day moving averages, and the RSI at 44 is in neutral territory but with downward momentum. Although the MACD is in negative territory, its approach to the signal line could signal a short-term recovery. The 2.7% decline in the last close suggests selling pressure may persist. Therefore, short-term direction remains uncertain.

The news highlights the potential for Anthropic, a major player in the AI field, to use Microsoft's chips. While this does not pose a direct threat to NVDA's dominance in the AI chip market, it can be interpreted as a signal of increasing competition. Technical indicators present a weak short-term outlook, with the RSI near the sell zone at 42, the MACD below the signal line, and the price trading below both the 20-day and 50-day moving averages. However, following the decline in the last 24 hours, this news could sustain interest in the AI sector and create expectations of a short-term recovery in NVDA shares. Overall, the positive impact of the news may partially offset the technical weakness, but any upside is likely to be limited.