TSMC Expands NVIDIA AI Technologies in Chip Manufacturing Processes

The news involves NVIDIA's AI technologies being expanded by TSMC, which is positive in terms of demand and collaboration. However, the stock closed down 1.28% in the last session, with an RSI of 37.36, nearing oversold territory, indicating potential for a short-term recovery. Although the MACD line remains below the signal line, the narrowing gap suggests weakening momentum. Trading below SMA20 and SMA50 presents a technically weak outlook, yet the positive sentiment from the news and the low RSI could support an upward move in the near term. Nevertheless, market-wide uncertainties and technical resistance levels pose a risk of limited upside.

The news indicates that TSMC has expanded its collaboration with NVIDIA, marking a significant step in AI chip production. Technically, the stock is trading above its 50-day moving average, and the RSI is in neutral territory, suggesting upside potential. However, the MACD is below the signal line and the 20-day average is acting as resistance, so the rally may be limited. In the short term, positive news flow and strong fundamentals could support upward movement, but caution is advised.