Arm Exceeds Third-Quarter Revenue Forecast Amid Rise in AI Spending

Arm's strong quarterly results and increasing artificial intelligence spending are creating a positive atmosphere for the semiconductor and technology sector, which could bring short-term buying interest to major tech stocks like GOOGL. GOOGL has risen 3.9% in the last 24 hours and is trading above its 20-day moving average (284.4), but the 50-day average (295.1) remains a resistance level. The RSI is at 51, in neutral territory, and although the MACD is in negative territory, it is above the signal line, signaling a recovery. Since the news is related to the sector rather than directly to GOOGL, the impact will be limited and indirect. Therefore, I forecast an upward direction but maintain moderate confidence.

Arm's revenue estimate beat is a fundamentally positive catalyst, but the price is currently in a weak technical setup. RSI at 33.9 is near the oversold threshold and is trending negative below the MACD signal line; the price is clearly below SMA20 and SMA50. The news could bring short-term reaction buying, but SMA20 around 199 may act as initial resistance. A limited upward reaction is possible in the 1-3 day outlook, while confirmation is needed for a lasting trend reversal.

Arm's strong quarterly results confirm that AI spending is continuing, providing a mildly positive read for NVDA. However, NVDA's own technical picture is weak: the price is below the SMA20 and SMA50, MACD is negative and below the signal line, and RSI at 34 points to weakness. Since the news concerns the sector trend rather than NVDA directly, its impact may remain limited. Although reaction buying may be seen in the short term, a recovery may not be sustained unless the SMA20 resistance around 205 is breached. The overall trend is neutral-to-positive, but caution is warranted due to technical pressure.