Shift Toward Chinese AI Models Accelerates as Companies Aim to Cut Costs

The news suggests that China's pivot toward domestic AI models could reduce demand for US-based chipmakers like NVDA. Technical indicators point to overbought conditions (RSI at 72.6), increasing the likelihood of a short-term correction. While the 6.9% gain over the past 24 hours may partially offset the negative impact of the news, momentum is likely to weaken. Although the MACD still signals upward momentum, overbought conditions and geopolitical risks could create selling pressure in the near term. Therefore, a slight decline is expected in the short term.

AMD shares have shown strong momentum, rising 6.96% in the last 24 hours. The RSI at 61 indicates the stock is not yet in overbought territory, while the MACD remains above its signal line, supporting the upward trend. The price is trading above both the 20-day and 50-day moving averages, reflecting a positive short-term outlook. News headlines suggest that increasing demand for AI models in China could sustain demand for AMD's graphics processing units. However, given the pace of the rally and overall market conditions, excessive optimism should be avoided.

The news could positively impact technology stocks such as BABA as the shift toward Chinese models increases. Technical indicators show the RSI near 70, approaching overbought territory, which may trigger some profit-taking in the short term. The MACD remains below the signal line, indicating weakening momentum. However, the price is above both the 20-day and 50-day moving averages, suggesting the uptrend continues. Given the 14% increase over the past 24 hours, upward movement is expected to persist in the short term, but caution is warranted due to overbought risks.