Google's increase in AI purchase commitments should benefit hardware space: Wedbush
Wedbush expects that Google's expansion of its AI purchasing agreements will benefit the hardware sector.
In a situation where there are expectations for benefits from AI-related hardware, we noted that the stock has formed a pullback with a -3.0% fluctuation over the past 7 days. Although the moving averages are in a non-aligned state, the RSI is at 38.1, indicating that it has entered an oversold phase, suggesting that it may be a good time to approach with a split strategy for a potential rebound.
If the stock price reaches the resistance level of $330.0, I will take profits, and if the support level of $310.0 breaks, I will cut losses.
The RSI(14) is at 38.1, indicating an oversold condition, and the moving averages are in a non-aligned state. The trading volume is at 1.20 times the 20-day average.
On July 31, 2026, there was a case where a 10.2% profit was generated due to a positive event overlapping with the 'hardware' keyword, which serves as a basis for this entry. Additionally, the cases of VEEE (July 16, 2026) and LRCX (July 6, 2026) do not have direct similarities but are noteworthy examples of top performance.
The forecasted return was conservatively set at 1.5%, but the actual result was a successful trade that significantly exceeded the forecast at 10.2%. The judgment that combined the RSI oversold condition with positive news related to hardware was appropriate; however, it was confirmed that the actual upward momentum was much stronger than expected.
We have confirmed that when technical indicators enter the oversold zone, the combination with news keywords (hardware) creates strong momentum. In the future, when similar patterns occur, we will not only verify support levels but also closely examine the strength of trend reversals.