Nvidia's 70% Growth Forecast Reflects Supply Ceiling, Demand Stronger

The news headline highlights Nvidia's robust demand outlook and 70% growth forecast, which serve as a positive fundamental factor for the stock. Technical indicators also support this optimism: the RSI at 62 is not in overbought territory, and the MACD is above its signal line, indicating positive momentum. The price is trading above the 20-day and 50-day moving averages, suggesting an upward short-term trend. Despite a 1.79% decline over the last 24 hours, this correction does not appear strong enough to disrupt the current uptrend. However, caution is warranted due to uncertainties regarding the supply ceiling and overall market conditions, which is why I do not have high confidence.

AMD shares have fallen 4.2% over the past 24 hours, with the RSI at 39.5 indicating weak momentum. The MACD is in negative territory and below the signal line, confirming a short-term downtrend. The price is trading below both the 20-day and 50-day moving averages, painting a negative technical outlook. While Nvidia's strong demand forecast is positive for the broader sector, AMD's own technical weakness and recent selling pressure take precedence. Therefore, the likelihood of continued decline in the short term is high, but as the stock approaches oversold conditions, bargain buying could also emerge.

TSMC (TSM) has lost 3.4% over the last 24 hours, with its RSI at 39.6, indicating weak momentum. The MACD is below the signal line and negative, suggesting short-term downward momentum. The stock is trading below both its 20-day and 50-day moving averages, pressuring the technical outlook. While Nvidia's growth forecast is positive on the demand side, concerns about supply constraints could weigh on TSMC's production capacity. In the short term, there is a risk of the price staying below the $410 level, though strong support may be found around $400.

Nvidia's robust growth forecast confirms strong demand for AI and semiconductors, which could positively impact sector players such as AVGO. Technically, the price is trading above the SMA20 and SMA50, with RSI in neutral territory and MACD in positive territory, albeit below the signal line. In the short term, this news flow and supportive technical structure could set the stage for an upward move. However, the slight decline in the latest close and weakening in MACD warrant caution. Therefore, while the bias is upward, I expect a limited rise rather than a strong rally.