Some of the biggest beneficiaries of the artificial intelligence boom — such as Micron and Advanced Micro Devices — now seem to be overbought, according to one popular technical metric. Despite a volatile week on Wall Street, all three major U.S. indexes notched weekly gains as third-quarter earnings appear positive so far. The S & P 500 logged a 1.7% weekly gain. The 30-stock Dow added 1.6% over the same period, while the Nasdaq Composite rose 2.1%. Amid this lengthy bull market, however, some stocks could be overvalued. We used the CNBC Pro stock screener tool to find the S & P 500’s most overbought stocks according to their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are often considered overbought, suggesting a pullback could be ahead. We also screened for names that rose at least 5% for the week. Take a look at the most overbought names below after this week’s rally: Caterpillar is the most overbought name in the list, with an RSI of 79.1. The stock has gained more than 7% this week and is up about 45% year to date. Tim Seymour, chief investment officer of Seymour Asset Management and manager of the Amplify CWP International Enhanced Dividend Income ETF, on Friday named Caterpillar as a major beneficiary of the rapidly growing buildout of AI data centers. “In the same way we talk about companies, not just tech companies, that are going to be utilizing AI and may transform them … their margin profile. … We’re talking about big industrial companies,” he said, adding that “Caterpillar is very intimately involved in the whole data center buildup.” Semiconductor stocks Advanced Micro Devices and Micron Technology made the overbought group with RSI’s of 70.8 and 70.5, respectively. Shares of AMD, up about 93% this year, rose 8% this week. Despite its run-up, 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, which suggests nearly 29% potential upside from Friday’s close. Bank of America analyst Vivek Arya said there is greater visibility into the deployment and ramp outlook for AMD’s Helios rack-scale AI hardware platform after the company’s comments at the 2025 Open Compute Project, or OCP Global Summit. AMD 1Y mountain AMD stock performance over the past year. Bunge Global is also considered overbought with an RSI of 76.7 and expected downside of more than 2.5%, according to analysts polled by FactSet. The stock jumped more than 20% this week after the Trump administration threatened to stop U.S. purchases of Chinese cooking oil in an act of retaliation against Beijing’s refusal to buy American soybeans. Shares of Bunge, one of the world’s largest soybean processors and cooking oil producers, are up about 24% for the year.
