Top 5 Tech Stocks You May Want To Dump This Month

As of Feb. 6, 2024, five stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here’s the latest list of major overbought players in this sector.

Everbridge, Inc. EVBG

• On Feb. 5, Everbridge announced it will be acquired by Thoma Bravo for $1.5 billion. The company’s stock gained around 23% over the past five days and has a 52-week high of $35.55 .
• RSI Value: 79.24
• EVBG Price Action: Shares of Everbridge gained 18.4% to close at $28.17 on Monday.

Super Micro Computer, Inc. SMCI

• On Jan. 29, Super Micro Computer reported better-than-expected second-quarter financial results. The company’s stock gained around 107% over the past month and has a 52-week high of $670.00.
• RSI Value: 91.56
• SMCI Price Action: Shares of Super Micro Computer jumped 14.4% to close at $663.35 on Monday.

Coherent Corp. COHR

• On Feb. 5, Coherent posted better-than-expected quarterly results The company’s stock gained around 17% over the past month and has a 52-week high of $60.46.
• RSI Value: 76.24
• COHR Price Action: Shares of Coherent gained 0.6% to close at $49.42 on Monday.

NVIDIA Corporation NVDA

• On Feb. 5, Goldman Sachs raised its price target on the stock from $625 to $800 and added it to the Conviction List. The company’s stock jumped around 33% over the past month and has a 52-week high is $694.97.
• RSI Value: 85.97
• NVDA Price Action: Shares of NVIDIA gained 4.8% to close at $693.32 on Monday.

Taiwan Semiconductor Manufacturing Company Limited TSM

• On Jan. 18, Taiwan Semiconductor Manufacturing reported a fourth-quarter revenue of $19.62 billion, down by 1.5% year-on-year, beating the consensus of $19.45 billion. EPS of $1.44 beat the consensus of $1.37.. The company’s stock jumped around 16% over the past month and has a 52-week high of $119.54.
• RSI Value: 72.05
• TSM Price Action: Shares of Taiwan Semiconductor Manufacturing gained 2.6% to close at $118.79 on Monday.

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