Wall Street's AI Bet Unravels: Hedge Funds and Retail Investors Flee

NVDA fell sharply by more than 10% in 24 hours to 186.68 and is trading below its SMA20 (192.04) and SMA50 (201.77); the short-term trend is weak. Although the RSI at 35.97 is approaching oversold territory, there is no reversal signal yet, and the MACD remains in negative territory, hovering slightly above its signal line. The news headline implies that hedge funds and retail investors are exiting AI positions, supporting selling pressure on AI leader stocks such as NVDA. Even if rebound buying emerges in the short term, any recovery may remain limited unless the 192-195 resistance zone is breached. Downside risk is more dominant for the next 1-3 days, but volatility will be high due to the oversold condition.

News of Wall Street's retreat from AI bets could have a negative echo for AI-focused companies. AMD's price is below its 50-day average and showed an 8.9% decline within 24 hours, so downward pressure is expected in the short term. RSI is 45 and MACD is negative, indicating that selling pressure will continue. However, since RSI is around 45, a slow decline rather than a sudden crash is possible.

AVGO fell sharply by 11.7% in 24 hours to 293.32 and is trading below its SMA20 (306.9) and SMA50 (322.9); the short-term trend is clearly downward. Although RSI14 at 29.7 is approaching oversold territory, MACD (-9.76) remains below its signal line (-9.13) and in negative territory, indicating weak momentum. The news headline implies an exit by hedge funds and retail investors from AI trades; such a decline in risk appetite could sustain selling pressure on high-beta AI stocks. While oversold conditions may prompt reaction buying, the 1-3 day outlook is bearish; without a sustained move back above 300, any recovery will remain weak. Nevertheless, given the abstract nature of the news and the possibility of a short-term rebound, confidence is limited at 0.62.