Calls to Slow AI Development Hit Chip Stocks

NVDA is under heavy selling pressure following news of a call for a slowdown in AI development. The price at 211.05 is well below the 20- and 50-day moving averages, with RSI at 23 in oversold territory. MACD is negative and below the signal line, momentum is weak. Although short-term bounce buying may occur, the news flow and technical picture keep downside risk intact. For 1-3 days, the downward trend is likely to continue.

A call to slow down artificial intelligence development could create selling pressure on chip stocks and negatively impact AMD's short-term outlook. The price is trading at 485.80, below the 20-day SMA (512.38) and near the 50-day SMA (490.78); the 24-hour change of -3.99% confirms weak momentum. Although the 14-day RSI at 36.3 is approaching oversold territory, it has not yet signaled a reversal. The MACD (3.33) remains below its signal line (6.24), indicating a negative outlook. Due to the news, the downward movement is likely to continue in the short term, but the low RSI level also brings the possibility of a limited rebound.

AVGO stock experienced a sharp decline, dropping 5.5%, following news of a call for a slowdown in AI development. Although the RSI at 27.4 approaches oversold territory, the MACD is negative and the price is below both the SMA20 and SMA50, confirming a weak short-term outlook. The news could deepen selling pressure by heightening demand concerns for the chip sector. However, oversold conditions may trigger buying interest; nevertheless, the overall trend remains downward. In the short term (1-3 days), downward risk may persist amid volatile trading.

Calls to slow down artificial intelligence development could increase demand concerns for the chip sector, creating selling pressure on TSM. Although the stock has fallen 5% in the last 24 hours and the RSI at 31 is approaching oversold territory, the MACD remains below the signal line and the price is below the 20-day moving average, indicating short-term weakness. The impact of the news could extend the downward trend for several days, but oversold conditions also bring the possibility of a limited rebound. Nevertheless, the overall outlook suggests that downside risk is more dominant.