Semiconductor stocks emerged as one of the most overbought stocks this week as investors continued to shower love on the sector. The S&P 500 and the tech-heavy Nasdaq Composite Index rose this week, rising 0.55% and 1.50%, respectively, boosted by gains in semiconductor stocks and optimism about budding peace talks between the United States and Iran. Investors gave semiconductor makers more love last week, with both the S&P and Nasdaq hitting intraday highs on Thursday. To find these overbought stocks, CNBC Pro used a stock screener tool to identify tickers based on their 14-day relative strength index (RSI). A stock with a 14-day RSI above 70 is considered overbought and a pullback may be on the way. Conversely, a value below 30 indicates that the stock is oversold and could bounce back. The following table shows the most overbought stocks this week. With the iShares Semiconductor ETF (SOXX) posting its 18th consecutive positive session on Friday, it’s no wonder semiconductor stocks made up a large portion of this week’s most overbought list. The index ended the week up 11.04%. Semiconductor names on 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 reported higher first-quarter profits and sales. The company also shared a positive outlook, citing high demand for analog chips that are essential for building AI data centers. AMD stock also soared this week despite the lack of company news. But Intel’s latest earnings report showed significant demand for central processing units (CPUs) as companies continue to build out AI capabilities. Investors took Intel’s success as a sign that other major CPU makers, such as AMD, may also have strong demand. Cameron Dawson, chief investment officer at NewEdge Wealth, said market leadership remains narrow. “This market continues to get narrower and narrower, and it used to be that the whole ‘mag seven’ thing was doing well. Now it’s really just semiconductors doing well,” Dawson said Thursday afternoon on CNBC’s “Closing Bell: Overtime.” The RSI is on the most overbought list at 84 after equipment rental company United Rentals raised its full-year revenue forecast to a range of $16.9 billion to $17.4 billion. The company added that it expects momentum to increase heading into its busiest season. Similarly, West Pharmaceutical Services also saw its profits increase this week. The company had adjusted earnings of $844.9 million, or $2.13 per share. This beat consensus earnings per share estimates of $1.68 and FactSet’s revenue estimates of $780.3 million. West Pharmaceutical ended the week with an RSI of 82.7. On the other hand, stocks in oversold territory this week included many aerospace and defense stocks. Investors sold defense stocks such as Northrop Grumman, Lockheed Martin, RTX and L3Harris Technologies as tensions in the Middle East finally appeared to be easing. Some investors worry that defense spending could already have peaked if Congress changes hands in midterm elections later this year. President Donald Trump announced Thursday that Israel and Lebanon have agreed to extend the ceasefire for three weeks after meeting with senior U.S. officials at the White House. On Friday, MS NOW reported, citing Pakistani officials, that Iranian Foreign Minister Abbas Araghchi was scheduled to arrive in Islamabad on Friday night and meet with Pakistani mediators about the possibility of a second round of peace talks with US White House Press Secretary Caroline Leavitt. Also confirmed Friday, U.S. officials Steve Witkoff and Jared Kushner will travel to Pakistan on Saturday morning for “direct talks” with Iranians. Respondent. Another name on this week’s most oversold list is Tractor Supply with an RSI of 21.2. Investors sent the stock plummeting the week after the farm retail chain reported disappointing first-quarter results. The company said non-essential spending at its stores has been weak as consumers hold back due to economic uncertainty and rising gas prices. Many Wall Street analysts lowered their price targets this week.
