Sell-Off in AI Stocks: Chip Manufacturers Lose Value

The KOSPI index is being negatively impacted by a wave of selling in AI stocks. Technical indicators point to oversold territory, with the RSI at 23.8, indicating extreme oversold conditions, and the MACD in negative territory. While a short-term recovery is possible, momentum is weak and selling pressure may persist. Therefore, the index is expected to continue its downward trend for a few more days.

The news headline indicates that a wave of selling in AI stocks has negatively impacted chip manufacturers. NVDA's last close was $196.52, losing more than 8% in the last 24 hours. The RSI is at 33, approaching oversold territory but not yet signaling a recovery. The MACD line is below the signal line and in negative territory, suggesting continued bearish momentum. Trading below short-term moving averages (SMA20 and SMA50) weakens the technical outlook. Therefore, I believe downward pressure may persist in the near term.

AMD shares fell 10.7% in the last 24 hours to $495.07. Although the RSI at 38.45 is approaching oversold territory, the MACD line remains below the signal line and in negative territory, suggesting short-term bearish momentum may persist. Trading below the 20- and 50-day moving averages further weakens the technical outlook. A broad sell-off in AI stocks could limit AMD's recovery efforts. Therefore, the downtrend is expected to continue over the next 1-3 days.

The news headline indicates broad selling pressure in AI stocks, with chip manufacturers losing value. AVGO shares have fallen 3.4% in the last 24 hours, with an RSI of 48.4 in neutral territory, though the MACD line remains below the signal line. The price is trading just below the 20- and 50-day moving averages, signaling short-term weakness. Considering the news flow and technical indicators together, the likelihood of continued downward movement over the next 1-3 days is high.