ByteDance Plans $14 Billion Chip Purchase for 2026 Amid Rising Computing Needs
- Expanded Procurement Plans: ByteDance plans to purchase $14 billion in computing chips for 2026, significantly increasing its budget from 85 billion Yuan in 2025, which underscores its commitment to enhancing computing capabilities amid rising application demands, likely boosting its competitiveness in AI and cloud computing.
- Localization Strategy: The company intends to order $5.7 billion worth of Huawei Ascend processors in 2026, reflecting a growing preference for domestic products among Chinese firms amid geopolitical tensions, which may reduce reliance on foreign suppliers and enhance supply chain security.
- AI Application Growth: ByteDance's Doubao chatbot processed over 50 trillion tokens in December, a substantial increase from 4 trillion last year, indicating a surge in demand for its AI applications, which is expected to drive further investments in intelligent applications and cloud computing.
- Chip Development Progress: ByteDance's chip manufacturing division is developing a lower-cost domestic chip to compete with Nvidia's H200, demonstrating the company's ongoing investment in technological self-reliance, which could reduce future dependence on external technologies.
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Technical Analysis for AI
Technical Sentiment Analysis for Sleepless AI (AI) As of , Sleepless AI (AI) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 3 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Sleepless AI (AI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.00921 | 0.0148 | 0.0204 | 0.026 | 0.0316 | 0.0372 | 0.0428 |
| Fibonacci | 0.0148 | 0.0191 | 0.0217 | 0.026 | 0.0303 | 0.0329 | 0.0372 |
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