This week, semiconductor stocks took center stage as one of the most overbought sectors, fueled by a surge in investor enthusiasm. The S&P 500 and the tech-heavy Nasdaq Composite both recorded gains, climbing 0.55% and 1.50% respectively, bolstered by a rally in semiconductor shares and growing optimism surrounding peace talks between the U.S. and Iran. On Thursday, both indices reached record intraday highs, reflecting this investor fervor.
To pinpoint these overbought stocks, CNBC Pro utilized its stock screener tool, which identifies tickers based on the 14-day relative strength index (RSI). Legends suggest that stocks with a 14-day RSI above 70 are viewed as overbought, indicating a potential pullback. Conversely, a reading below 30 signifies that a stock is oversold and could be ripe for rebound. The list of this week’s most overbought stocks prominently features semiconductor giants such as Advanced Micro Devices (AMD), ON Semiconductor, NXP Semiconductors, Microchip Technology, Texas Instruments, and Analog Devices.
The iShares Semiconductor ETF (SOXX) marked its 18th consecutive positive session on Friday, underscoring the strength of the semiconductor sector, which posted an impressive 11.04% weekly gain. Texas Instruments saw its shares skyrocket after announcing better-than-expected first-quarter earnings and revenue, along with optimistic guidance driven by robust demand for its vital analog chips used in AI data centers. AMD also experienced significant gains this week, despite lacking any company-specific news. Intel’s recent earnings report revealed strong demand for central processing units (CPUs), suggesting positive trends for other major players like AMD.
However, market leadership appears increasingly narrow, according to Cameron Dawson, chief investment officer at NewEdge Wealth. “This market continues to get narrower and narrower. Once it was a story of the ‘Magnificent Seven’ thriving; now it’s primarily about semiconductors,” Dawson remarked during an appearance on CNBC’s “Closing Bell: Overtime.”
Among the other notable overbought stocks this week was United Rentals, boasting an RSI of 84 after the equipment rental company raised its full-year sales forecast to between $16.9 billion and $17.4 billion, anticipating strong momentum as it heads into its peak season. Similarly, West Pharmaceutical Services also experienced an uplift following its earnings report, posting adjusted earnings of $2.13 per share on revenue of $844.9 million, significantly exceeding analysts’ expectations.
In contrast, the oversold category was populated by several aerospace and defense stocks. Companies like Northrop Grumman, Lockheed Martin, RTX, and L3Harris Technologies faced sell-offs as tensions in the Middle East seemed to ease. Concerns about potential waning defense budgets have arisen, particularly as the political landscape shifts ahead of upcoming mid-term elections. Peace dialogues have been gaining traction, with recent news confirming that President Trump facilitated an extension of the ceasefire between Israel and Lebanon during a meeting with U.S. officials.
In a noteworthy detail, Tractor Supply found itself among this week’s oversold stocks, registering an RSI of 21.2. Disappointing first-quarter results sparked a decline in its shares, attributed to weakened nonessential spending as consumers grapple with economic instability and rising fuel costs. In light of its performance, some Wall Street analysts downgraded their price targets for the retailer.
As the market landscape continues to evolve, investor sentiment will play a pivotal role in shaping the trajectories of these tech-centered stocks in the weeks to come.
Original Source: https://www.cnbc.com/2026/04/25/semiconductor-names-make-up-a-big-portion-of-this-weeks-most-overbought-stocks.html
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Publish Date: 2026-04-25 17:54:00
