Top 5 Tech Stocks That That Could Sink Your Portfolio In May

The most overbought stocks in the information technology sector presents an opportunity to go short on these overvalued companies.

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.

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

NVIDIA Corporation NVDA

• NVIDIA reported better-than-expected first-quarter results and issued strong guidance. “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.” The company’s stock has a 52-week high of $318.28 .
• RSI Value: 82.43
• NVDA Price Action: Shares of NVIDIA fell 0.5% to close at $305.38 on Wednesday.

Super Micro Computer, Inc. SMCI

• Super Micro Computer issued fourth-quarter adjusted EPS and sales guidance and FY23 adjusted EPS guidance above estimates. "Supermicro continues to see record levels of engagements in our new generation product lines, especially for AI applications," said Charles Liang, President and CEO of Supermicro. The company’s stock has a 52-week high of $171.67.
• RSI Value: 84.43
• SMCI Price Action: Shares of Super Micro Computer rose 3.5% to close at $167.62 on Wednesday.

Nutanix, Inc. NTNX

• Nutanix posted upbeat third-quarter results. "Our business performed well in the third quarter against an uncertain macro backdrop, as the value proposition of our cloud platform continued to resonate with customers," said Rajiv Ramaswami, President and CEO of Nutanix. The company has a 52-week high of $33.73.
• RSI Value: 72.09
• NTNX Price Action: Shares of Nutanix fell 0.6% to close at $25.41 on Wednesday.

C3.ai, Inc. AI

• C3.ai reported strong preliminary financial results. The company’s 52-week high is $34.68.
• RSI Value: 71.00
• AI Price Action: Shares of C3.ai rose 2.5% to close at $27.85 on Wednesday.

Advanced Micro Devices, Inc. AMD

• Third Point recently disclosed it took a stake in Advanced Micro Devices in a 13F filing. The company has a 52-week high of $110.99.
• RSI Value: 78.20
• AMD Price Action: Shares of Advanced Micro Devices rose 0.1% to settle at $108.27 on Wednesday.

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