Amazon, Alphabet, and Microsoft Develop Their Own AI Chips: What Does It Mean for Nvidia?

Microsoft shares have fallen 5.7% in the last 24 hours, with the RSI entering oversold territory at 26.6. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. While news suggests that Microsoft's development of its own AI chips could reduce reliance on Nvidia, this may create short-term uncertainty. Although technical indicators signal oversold conditions, the downtrend could persist. Therefore, further downside movement is expected in the near term.

The news indicates that Alphabet is developing its own AI chips. While this is positive for GOOGL in the long term, it may create uncertainty in the short term. Technical indicators are giving mixed signals: the RSI is neutral at 48, the MACD is below zero but approaching the signal line, suggesting weak momentum. The price is above the 20-day moving average but below the 50-day average, indicating potential for a short-term recovery but likely facing resistance. The 1.2% increase in the last 24 hours is positive but does not show sufficient strength. Therefore, short-term direction remains uncertain.

While the news highlights the potential for major technology companies to reduce their dependency on Nvidia, it does not pose a direct short-term threat to Amazon. However, technical indicators are quite weak: the RSI is in oversold territory at 26.8, the MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. The sharp 4.7% decline in the last 24 hours indicates continued selling pressure. In the short term, the downtrend is expected to persist until a recovery signal emerges.

The news suggests that Nvidia's reliance may diminish as its largest customers develop their own AI chips. Technical indicators already paint a weak picture: RSI at 28 is in oversold territory, MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. The 8% decline in the last 24 hours confirms continued selling pressure. In the short term, the downtrend is expected to persist due to this negative news and technical outlook.