Apollo Economist: Two-Stage Burst Scenario for AI Bubble

The news headline contains a warning that the artificial intelligence bubble may burst, potentially creating negative sentiment for AI-focused stocks such as NVDA. Technical indicators show the RSI approaching overbought territory at 66.5, increasing the likelihood of a short-term correction. Although the MACD remains positive, the recent 4.07% price increase over the past 24 hours could turn into profit-taking under the influence of this news. While the price staying above the SMA20 and SMA50 supports the medium-term trend, a news-driven pullback is expected in the short term. Therefore, I assess a moderately confident bearish outlook.

The news headline contains a warning that the artificial intelligence bubble could burst, which may have a short-term negative impact on AI-focused stocks such as AMD. Technical indicators present a neutral picture: the RSI is at 50, the MACD is below the signal line, and the price is below the 20-day moving average. Therefore, the negative sentiment generated by the news, combined with the weakness in technical indicators, supports a short-term bearish trend. However, since the 50-day moving average remains above the price, the decline may be limited.

A news headline suggesting the bursting of the AI bubble could create negative sentiment for AI-focused stocks such as TSM. Technical indicators support this view: although the RSI at 35.6 is approaching oversold territory, the MACD remains below the signal line and in negative territory, indicating that short-term bearish momentum may persist. The price is trading below the 20- and 50-day moving averages and has lost 4.2% in the last 24 hours. Therefore, while the downtrend is likely to continue in the short term, a rebound cannot be ruled out given the oversold conditions.

The news headline presents a negative scenario suggesting the AI bubble may burst, potentially putting pressure on AI-focused stocks such as AVGO. Technically, the stock has lost nearly 4% in the last 24 hours, with the RSI falling to 46, below the neutral zone, indicating short-term weakness. The MACD is below the signal line and trending downward, showing negative momentum. The price is below the 20-day moving average but above the 50-day moving average, which could serve as a medium-term support level. In the short term, the downtrend may continue, but since the stock has not entered oversold territory, the pace of the decline could remain limited.