Asian Stocks Brace for AI Selloff After Sharp US Decline

NVDA fell 12% in 24 hours, dropping well below its SMA20 and SMA50. With an RSI of 17.7, it is in oversold territory, and its MACD is below the signal line in negative territory. Asian markets preparing for an AI selloff following the sharp US decline signals that risk appetite will remain weak in the near term. Oversold conditions could set the stage for relief buying, but momentum remains to the downside. Over the 1-3 day outlook, downward pressure and high volatility are expected; nevertheless, given the potential for relief buying, one should not be overly assertive in predicting a definitive decline.

AMD fell sharply by more than 16% in 24 hours, sliding to the 402.5 level, with its RSI at 23 placing it in oversold territory. The MACD is clearly below its signal line and the price sits well beneath the SMA20/SMA50, indicating a strongly downward trend. Asian markets following the AI selloff in the US point to continued selling pressure on high-beta semiconductor stocks such as AMD. Oversold conditions could set the stage for short-term bargain buying, but momentum remains negative. The 1-3 day outlook is therefore to the downside, with the possibility of a cautious recovery.

TSM fell 13% in 24 hours, dropping markedly below its SMA20 and SMA50. RSI14 stands at 13.6, placing it in oversold territory, while MACD remains in negative territory below its signal line. The news headline suggests the AI-driven selloff in Asian equities may continue, and TSM sits at the center of this theme. Oversold conditions could set the stage for short-term rebound buying, but momentum remains to the downside. Over the 1-3 day horizon, downward pressure and high volatility are expected; the confidence level is kept at medium due to the risk of a sharp rebound.

AVGO has already fallen 11.5% in 24 hours, pushing its RSI14 to 20.3 into oversold territory, while MACD is negative and below its signal line. News of an AI selloff in Asia points to a continuation of the sharp US decline and could weigh on risk appetite in the short term. However, oversold conditions may set the stage for bargain-hunting, so confidence in further downside should be limited. With the price clearly below SMA20 and SMA50, the trend is weak, but the 291 level should be watched as short-term support. Given uncertainty in the news flow, a choppy range is also possible rather than a sharp additional selloff.