BIS Warns of $4 Trillion Risk in AI Investments

AMD stock has surged nearly 14% in the last 24 hours, entering overbought territory (RSI 74.7). The BIS's warning of a $4 trillion risk in AI investments has heightened concerns about AI chip demand, potentially triggering short-term profit-taking. Technical indicators already point to overheated momentum; such news could serve as a pretext for a correction. However, strong MACD and rising volume suggest the downside may be limited. In the 1-3 day horizon, a downward move is more likely, but the news impact may be temporary.

The BIS's $4 trillion risk warning regarding AI investments could create short-term selling pressure on high-beta AI stocks like NVDA. The price has already fallen 2.5% in 24 hours and is trading below its 20-day moving average (226.8); the RSI at 41 is weak but not in oversold territory. The MACD is negative and below its signal line, indicating that downward momentum may continue. However, since the news is an abstract macro warning, its impact may be limited; the 50-day average (224.6) could provide support. Nevertheless, I believe that downside risk is more dominant in the short term.