Google Prepares New Chip Powered by Gemini AI

The news highlights Google's innovative step in artificial intelligence, which could act as a positive catalyst for the stock. Technical indicators show the RSI in neutral territory (53) and the price trading near the 20-day moving average (359.74), indicating short-term direction uncertainty. The MACD line is below the signal line and in negative territory, but this may point to weakening bearish momentum. The last closing price (358.75) sits just above the 50-day moving average (358.07), which could serve as a support level. A short-term upward move may be expected due to the positive news impact, but confidence is moderate given mixed signals from technical indicators.

The news highlights Google's innovative steps in the field of artificial intelligence, which could act as a positive catalyst for the stock. Although technical indicators present mixed signals, the RSI being in neutral territory and the price remaining above the 50-day moving average support short-term upside potential. While the MACD being below the signal line warrants caution, the news flow and AI trend could create a positive impact. The slight increase in the latest closing price also supports this view. However, the market's reaction to the news may remain limited, so it would not be appropriate to assign a high level of confidence.

While the news could potentially boost demand for AI chips, it is not a direct catalyst for NVDA stock. Technical indicators are sending mixed signals: the RSI is neutral at 48, the MACD is below the signal line, and the stock is trading below its short-term moving averages. The 2.68% decline in the last 24 hours indicates continued selling pressure. Therefore, the short-term direction is unclear, and the market needs time to price in the news.

Although AMD's main rival Google is increasing competitive pressure by developing its own AI chip, AMD's technical indicators are signaling a short-term recovery. The RSI is at 51, in neutral territory, and the MACD line has started to cross above the signal line, suggesting momentum may turn upward. A close above the 20-day SMA (506) indicates that the support level is holding. However, yesterday's 6% decline and trading below the 50-day SMA (531) suggest that any upside may be limited and could face resistance.