Nvidia Intensifies Competition with New AI Chip

The news of Nvidia's new artificial intelligence chip can be considered a positive catalyst for the stock. Technical indicators also support this view; the RSI at 64 is not yet in overbought territory and still has upside potential. The MACD line is above the signal line, confirming an upward trend. The price is trading above the 20- and 50-day moving averages and has recorded a 5.7% increase in the last 24 hours. However, caution is advised in the short term to avoid excessive optimism.

GOOGL shares fell 3.16% in the last close, trading at $378.18. While the RSI at 35.8 approaches oversold territory, the MACD remains below the signal line and in negative territory. The price has fallen below both the 20-day ($383.47) and 50-day ($386.22) moving averages, indicating short-term weakness. News of Nvidia's new AI chip could heighten competitive concerns for GOOGL's own AI investments, deepening the current technical weakness. However, the RSI nearing oversold levels suggests the decline may be limited and a short-term bounce could occur.