Semiconductor names make up a big portion of this week’s most overbought stocks
Semiconductor stocks emerged as one of the most overbought cohorts this week as investors continued to pour love into the sector. The S & P 500 and tech-heavy Nasdaq Composite rose this week, respectively adding 0.55% and 1.50% and boosted by a rally in semiconductor names and optimism on budding peace talks between the U.S. and Iran. Investors poured more love into chipmakers this past week, sending both the S & P and Nasdaq to touch a new record intraday high on Thursday. To find these overbbought names, CNBC Pro used its stock screener tool to identify tickers based on their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are considered overbought, meaning that a pullback may be on the horizon. Conversely, a reading below 30 indicates that a stock is oversold and could be due for a potential rebound. The following table shows this week’s most overbought names. With the iShares Semiconductor ETF (SOXX) posting its 18 th positive session in a row on Friday, it’s no surprise that chip stocks made up a healthy portion of this week’s most overbought list. The index ended the week with an 11.04% gain. The semiconductor names that made this week’s most overbought stocks list include Advanced Micro Devices , ON Semiconductor , NXP Semiconductors , Microchip Technology , Texas Instruments and Analog Devices . Shares of Texas Instruments soared this week after the company posted a first-quarter earnings and revenue beat . The company also shared upbeat guidance, citing high demand for its analog chips that are crucial for the buildout of AI data centers. AMD stock also surged this week, despite no company news. But Intel’s latest earnings report showed big demand for central processing units, or CPUs, as companies continue building out their AI capabilities. Investors took Intel’s success as a sign that other major CPU makers such as AMD could also be seeing strong demand. Market leadership remains constricted, according to Cameron Dawson, chief investment officer at NewEdge Wealth. “This market continues to get narrower and narrower. And once, it was a story of all ‘Mag Seven’ doing well. Now it’s really just a story of semiconductors doing well,” Dawson said on CNBC’s ” Closing Bell: Overtime ” on Thursday afternoon. United Rentals also made the most overbought list, with an RSI of 84, after the equipment rental company boosted its full-year sales forecast to a range of between $16.9 billion and $17.4 billion. The company added that it sees momentum heading into its busiest season. Likewise, West Pharmaceutical Services saw a post-earnings boost this week. The company earned $2.13 per share after adjustments on revenue of $844.9 million. This beat consensus the earnings estimate of $1.68 per share and the revenue forecast of $780.3 million from FactSet. West Pharmaceutical ended the week with an RSI of 82.7. On the other hand, stocks in oversold territory this week included a slew of aerospace and defense names. Investors sold off defense stocks such as Northrop Grumman , Lockheed Martin , RTX and L3Harris Technologies after tensions in the Middle East appeared to finally be thawing. Some investors are also worried that we’ve already hit peak defense spending if Congress changes control in the mid-term elections later this year. President Donald Trump announced Thursday that Israel and Lebanon had agreed to extend their ceasefire by three weeks following a meeting at the White House with top U.S. officials. On Friday, MS NOW reported, citing a Pakistani official, that Iranian Foreign Minister Abbas Araghchi is expected to arrive in Islamabad on Friday evening to have talks with Pakistani mediators about a possible second round of peace negotiations with the U.S. White House press secretary Karoline Leavitt also confirmed Friday that U.S. officials Steve Witkoff and Jared Kushner will head to Pakistan on Saturday morning to engage in “direct talks” with their Iranian counterparts. Another name on this week’s most oversold list was Tractor Supply , with an RSI of 21.2. Investors sent the stock tumbling on the week after the retail farm store chain posted disappointing first-quarter results. The company said nonessential spending at its stores has been weak as consumers pull back amid economic uncertainty and rising gasoline prices. A number of Wall Street analysts cut their price targets this week.
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