Top 3 Tech Stocks That May Crash In Q1

As of Feb. 24, 2025, three 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.

Kingsoft Cloud Holdings Ltd KC

On Nov. 19, 2024, Kingsoft Cloud reported a fiscal third-quarter 2024 revenue of 1.89 billion Chinese yuan ($268.7 million), up by 16.0% year-on-year, beating the analyst consensus estimate of $247.46 million. The company's stock gained around 117% over the past month and has a 52-week high of $22.26.
RSI Value: 70.7
KC Price Action: Shares of Kingsoft Cloud gained 2.5% to close at $20.67 on Friday.

VNET Group Inc – ADR VNET

On Nov. 20, VNET Group reported third-quarter EPS and revenue that rose year-over-year. “We achieved strong third quarter results mainly driven by our wholesale IDC business,” said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. The company's stock gained around 113% over the past month and has a 52-week high of $16.13.
RSI Value: 89
VNET Price Action: Shares of VNET Group fell 0.6% to close at $14.59 on Friday.

Pony AI Inc PONY

On Feb. 21, Pony AI launched paid robotaxi services connecting Guangzhou's city center with Baiyun International Airport and South Railway Station. The company said it is the first and only approved to operate on these high-demand routes. The company's stock gained around 77% over the past month and has a 52-week high of $23.88.
RSI Value: 79.8
PONY Price Action: Shares of Pony AI gained 32.1% to close at $23.61 on Friday.

Read This Next: