Google Shares Rise as New AI Chip Targets 10x Efficiency

The news headline presents a positive catalyst, indicating Google's goal of achieving 10x efficiency in its artificial intelligence chip. However, technical indicators are weak: the RSI is near oversold territory at 33, the MACD is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. The recent 3.1% decline in the last close reflects short-term pressure. While the news is positive, the technical picture may take time to recover; therefore, I make a bullish forecast but with low confidence.

The news headline presents a positive catalyst, stating that Google's new artificial intelligence chip aims for 10x efficiency. However, technical indicators are weak: the price is below the 20- and 50-day moving averages, the RSI is near oversold territory at 34.7, and the MACD is negative below the signal line. In the short term, this positive news may trigger a limited rally constrained by technical resistance, but momentum has not yet turned. Therefore, the direction is upward, but confidence is moderate.

NVDA shares fell 4.3% in the last close and are trading below their 20- and 50-day moving averages. While the RSI at 38.7 approaches oversold territory, the MACD remains below the signal line and in negative territory, indicating weak short-term momentum. Google's announcement of a new AI chip could create competitive pressure for NVDA, deepening the current technical weakness. Although the low RSI level suggests a possible buying opportunity, the downward trend makes a continued decline more likely.

AMD shares fell 10.5% in the last 24 hours to $495.5. While the RSI at 38.5 approaches oversold territory, the MACD line remains below the signal line and in negative territory. Trading below the 20- and 50-day moving averages weakens the technical outlook. News of Google's new AI chip could intensify competitive pressure on AMD in the data center market. The risk of continued selling pressure in the short term is high.