AMD and a Hot Trucking Stock Flash Overbought Signals

Some of the biggest names riding the artificial intelligence wave including Micron Technology and Advanced Micro Devices (AMD) may have surged too far, too fast, based on one widely followed technical indicator.

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Even after a choppy week on Wall Street, all three major U.S. stock indexes still closed higher, boosted by upbeat third-quarter earnings results. The S&P 500 advanced 1.7% for the week, the Dow Jones Industrial Average climbed 1.6%, and the Nasdaq Composite added 2.1%.

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Yet beneath the surface of this extended bull run, some stocks are flashing warning signs of being overbought. Using the CNBC Pro stock screener, analysts identified the most overbought S&P 500 stocks based on their 14-day relative strength index (RSI) a key technical gauge of momentum.

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Typically, a stock with an RSI above 70 is considered overbought, suggesting that prices may be due for a near-term pullback. CNBC Pro also filtered for companies that rose at least 5% this past week to capture those with the strongest recent momentum.

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Here are the most overbought names following the latest rally:

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Caterpillar Leads the Overbought Pack

Caterpillar topped the list with an RSI of 79.1, making it the most overbought stock in the S&P 500. Shares jumped more than 7% this week and are now up about 45% year to date, reflecting investor confidence in the industrial giant’s exposure to infrastructure and data center expansion.

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Tim Seymour, chief investment officer of Seymour Asset Management and portfolio manager of the Amplify CWP International Enhanced Dividend Income ETF, highlighted Caterpillar as a surprising but key beneficiary of the AI data center boom.

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“In the same way we discuss companies beyond tech that are integrating AI to transform their margins and operations, Caterpillar stands out,” Seymour said Friday on CNBC. “The company is deeply involved in the physical buildout of these massive data centers.”

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AMD and Micron: AI Chip Stocks Looking Stretched

Semiconductor leaders Advanced Micro Devices and Micron Technology also landed on the overbought list, with RSIs of 70.8 and 70.5, respectively.

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AMD’s stock has been one of 2025’s standout performers, soaring about 93% year to date and another 8% this week alone. Despite its remarkable rally, several analysts believe the chipmaker could still climb higher.

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On Friday, Bank of America reaffirmed its buy rating on AMD and boosted its price target by $50 to $300, implying nearly 29% upside from the latest close.

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BofA analyst Vivek Arya pointed to improved visibility around the rollout of AMD’s Helios rack-scale AI platform, following insights shared at the 2025 Open Compute Project (OCP) Global Summit. Arya said the event reinforced expectations for stronger deployment momentum and a clearer product ramp timeline.

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Meanwhile, Micron Technology, a major player in AI memory and storage, continues to benefit from growing demand for high-bandwidth memory chips used in AI servers. However, with its RSI also above the overbought threshold, traders may see a short-term cooldown ahead before its next move higher.

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Bunge Global: Agricultural Stock Joins the List

Outside the tech sector, Bunge Global also entered overbought territory with an RSI of 76.7. According to FactSet, analysts project a potential downside of roughly 2.5% in the near term.

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Bunge’s shares soared more than 20% this week after the Trump administration reportedly threatened to ban U.S. imports of Chinese cooking oil in response to Beijing’s continued resistance to buying American soybeans. As one of the world’s largest processors of soybeans and producers of cooking oil, Bunge has been a direct beneficiary of the escalating trade tensions. The stock is now up about 24% year to date.

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Market Outlook

While this week’s market gains highlight resilient investor sentiment, the sharp rallies in several AI-related and industrial names suggest a period of technical cooling may be due. Overbought conditions don’t necessarily mean a crash is imminent but they often indicate that momentum traders may start taking profits.

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Still, the broader picture remains constructive. Earnings strength from major corporations continues to support the market’s climb, and optimism surrounding AI-driven growth remains high.

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For investors, the takeaway is clear: stocks like Caterpillar, AMD, Micron, and Bunge have enjoyed impressive runs, but some may need to catch their breath before resuming their next leg higher. Watching technical indicators like RSI can help identify when that next buying opportunity might arrive.

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