TSMC Adds $100 Billion to Arizona Investment: AI Chip Demand Drives Expansion

Although the news that TSMC is increasing its Arizona investment—linked to AI chip demand—provides a long-term positive signal, the stock fell nearly 6% in the last close, with technical indicators pointing to weakness. The RSI is approaching oversold territory at 33, while the MACD is below the signal line and trending negative. The price is trading below both the 20-day and 50-day moving averages, confirming short-term pressure. Despite the positive news, the technical outlook suggests waiting for further confirmation of a recovery.

TSMC's decision to increase its Arizona investment by $100 billion confirms that demand for AI chips remains robust. As AMD is one of TSMC's largest customers, this news could positively impact the company's future revenue expectations. However, AMD's stock has dropped 10.5% in the last 24 hours, with its RSI falling to 38, approaching oversold territory. Although the MACD is in negative territory, it is nearing the signal line, which could indicate a short-term recovery. Combining technical indicators with the news, the stock has a high probability of an upward correction within 1-3 days.

Although the news reflects positively on artificial intelligence chip demand, NVDA's technical indicators are weak. The RSI stands at 38.7, indicating a sell zone, and the MACD is trading negatively below the signal line. The price has closed below the 20- and 50-day moving averages and has lost 4.3% in the last 24 hours. In the short term, without a recovery signal, the risk of a continued downtrend remains high.

The news confirms that demand for AI chips remains robust, which is positive for semiconductor companies such as ARM. Technically, the price is trading near the 20-day moving average, and the RSI at 44 is approaching oversold territory, suggesting potential for a short-term rebound. Although the MACD line remains below the signal line, the narrowing gap indicates that the weakening momentum may be coming to an end. The 6% decline over the past 24 hours could present a buying opportunity in response to the news. However, being well below the 50-day moving average suggests any upside may be limited.