Monolithic Power Revenue Up 48%: Can AI Chips Sustain the Momentum?

The news of strong revenue growth confirms the momentum in the AI chips segment and could provide a positive catalyst for the stock. Technically, the price is above the 20-day moving average, and the RSI is in neutral territory, indicating room for an upward move in the short term. The MACD is still negative but approaching the signal line, which may suggest improving momentum. However, the price being below the 50-day average and overall market uncertainties suggest that the upside may be limited. Therefore, I expect a short-term rise with cautious optimism.

The news confirms strong demand in the AI chip sector, creating a positive industry signal for NVDA. Technical indicators also support this view: the price is above the 20- and 50-day moving averages, and the RSI at 60 is not in overbought territory. Although the MACD line is just below the signal line, remaining in positive territory indicates sustained momentum. The 5.9% rise over the last 24 hours suggests that short-term buying pressure may continue. However, since the news is not directly specific to NVDA and given uncertainties in broader market conditions, the bullish outlook is tempered with moderate confidence.

AMD shares have risen 4.9% in the last 24 hours, with the RSI at 68.7 indicating strong momentum. The MACD is above the signal line and positive, suggesting that short-term buying pressure may continue. News headlines highlight robust demand in the AI chip sector, which could create a favorable industry tailwind for AMD. However, the RSI approaching 70 signals a risk of entering overbought territory, which may limit the pace of the rally. The price remains above the SMA20 and SMA50, confirming trend support, but profit-taking could occur in the short term.

AVGO fell 2.86% in the last session and is trading below both its 20-day and 50-day moving averages. The RSI at 46 indicates weak momentum, while the MACD, though above its signal line, remains in negative territory, suggesting continued downward pressure. Although the headline focuses on Monolithic Power's revenue growth, this is not a direct catalyst for AVGO, and the broader optimism around AI chips does not appear to be fully reflected in the price. With a weak short-term technical outlook, the price is likely to either rebound toward the 20-day average or pull back further. Therefore, in a 1-3 day perspective, the probability of continued downside movement is higher.