Billionaire Investor Ray Dalio: AI Bubble Could Burst

The news headline raises concerns that the artificial intelligence bubble may burst, potentially putting pressure on AI-focused stocks such as NVDA. Technical indicators also point to weakness: the RSI is near oversold territory at 39, the MACD is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. The 1% decline over the past 24 hours indicates continued selling pressure. With a combination of negative news flow and a bearish technical outlook in the short term, the downtrend is likely to persist.

Ray Dalio's warning about an AI bubble could create short-term selling pressure on AI-focused stocks such as AMD. Technically, the RSI is approaching overbought territory at 67.7, and the 7% rise in the last 24 hours may set the stage for profit-taking. Although the MACD is positive, momentum could weaken. Therefore, a bearish trend is expected over the next 1-3 days.

GOOGL shares fell 6.1% in the last close, with the RSI dropping to 23, entering oversold territory. The MACD remains below the signal line and in negative territory, while the price trades below both its 20-day and 50-day moving averages. Ray Dalio's warning of an AI bubble could further weigh on an already weak technical outlook. In the short term, the risk of continued selling pressure is high, though oversold conditions may trigger some buying on the dip.