Some of the biggest beneficiaries of the artificial intelligence boom, including Micron and Advanced Micro Devices, now appear overbought, according to popular technical indicators. Despite a volatile week on Wall Street, all three major U.S. indexes rose for the week as third-quarter profits look strong so far. The S&P 500 rose 1.7% for the week. During the same period, the Dow Jones Industrial Average rose 1.6% and the Nasdaq Composite Index rose 2.1%. But during this long bull market, some stocks may be overvalued. We used the CNBC Pro stock screening tool to find the most overbought stocks in the S&P 500 based on the 14-day Relative Strength Index (RSI). Stocks with a 14-day RSI above 70 are often considered overbought, suggesting a downside may be in store. We also screened for names that rose at least 5% during the week. Take a look below at the most overbought stocks after this week’s rally. The most overbought stock on the list is Caterpillar, with an RSI of 79.1. The company’s stock has risen more than 7% this week and is up about 45% this year. Tim Seymour, chief investment officer at Seymour Asset Management and manager of the Amplify CWP International Enhanced Income ETF, on Friday named Caterpillar Inc. as a major beneficiary of the company’s rapidly growing AI data center ramp-up. “By the same token, we’re not just talking about technology companies, but companies that could use AI to change their profit margins. … We’re talking about large industrial companies,” he said, adding, “Caterpillar is very closely involved in the entire data center buildout.” Semiconductor stocks Advanced Micro Devices and Micron Technology were in the overbought group with an RSI of 70.8 and 70.5, respectively. AMD stock, up about 93% this year, is up 8% this week. Despite the rise, some analysts see room for further gains. On Friday, Bank of America reiterated its buy rating on the stock and raised its price target by $50 to $300. This suggests a potential upside of nearly 29% from Friday’s closing price. Bank of America analyst Vivek Arya said the outlook for the deployment and launch of AMD’s rack-scale AI hardware platform Helios has become clearer following AMD’s comments at the 2025 Open Computing Project (OCP Global Summit). AMD 1Y Mountain AMD stock price performance over the past year. Bunge Global is also considered overbought with an RSI of 76.7, and a decline of more than 2.5% is expected, according to analysts compiled by FactSet. Stocks soared more than 20% this week after the Trump administration threatened to halt U.S. purchases of Chinese cooking oil in retaliation for Beijing’s refusal to buy U.S. soybeans. Shares in Bunge, one of the world’s largest soybean processors and edible oil producers, are up about 24% for the year.
