TSMC's Photonic Rise Could Be a Silent Catalyst in AI Chips

The news headline suggests that TSMC's advancement in photonics technology could serve as a positive catalyst for AI chips. However, technical indicators point to short-term weakness: the price fell 4.7% in the last close, the RSI is neutral at 43, and the MACD is negative below the signal line. Nevertheless, the narrowing of the MACD histogram and the price trading near the 20-day moving average may indicate slowing downward momentum. While the news provides a positive fundamental factor, the technical picture does not yet offer a clear direction; therefore, I see limited upside potential in the short term.

The news highlights TSMC's progress in photonics technology as a potential catalyst for AI chips. NVDA shares have risen 5.4% in the last 24 hours, and while the RSI at 68 approaches overbought territory, the MACD remains positive above the signal line. The price is trading above the 20- and 50-day moving averages, supporting short-term bullish momentum. However, the elevated RSI suggests some profit-taking risk in the near term.

The news suggests that TSMC's advancement in photonics technology, as a supplier to AMD, could serve as a positive catalyst for AI chips. On the technical indicators, the RSI at 59 is in neutral territory, while the MACD is above the signal line and positive, supporting short-term bullish momentum. The price is trading above the 20- and 50-day moving averages, indicating an upward trend. However, the 0.85% decline in the last 24 hours and overall market uncertainty limit the bullish outlook to moderate confidence.

Although ASML's stock closed down 2.75% in the last session, the RSI at 47.4 indicates a neutral zone, while the MACD line is above the signal line, giving a positive signal. The 20-day simple moving average (1782) provides support just below the current price (1790), while the 50-day average (1826) stands out as resistance. Although the news headline focuses on TSMC's developments in the photonics field, this may create sectoral optimism rather than a direct catalyst for ASML. In the short term, the price is expected to fluctuate in the 1780-1830 range and require additional triggers to determine a clear direction.