Robinhood and these other stocks are overbought after another record-setting week on Wall Street

Following a broad market rally this week, several high-flying stocks, including Robinhood, Micron Technology, Western Digital, and Fair Isaac, are now technically overbought based on their 14-day Relative Strength Index (RSI) readings above 70. Robinhood gained over 20% with an RSI near 76, while AI hardware and storage firms like Western Digital (RSI 87.7) and Micron (RSI 81.7) also saw double-digit weekly increases, signaling a potential near-term pullback. Notably, analysts' consensus price targets for Micron and Western Digital suggest significant downside despite their recent surges, indicating a divergence between technical momentum and fundamental outlook.

Analysis

A popular technical metric suggests that some of the most high-flying stocks this year — such as Robinhood and Micron Technology — now appear overbought, particularly after this week's market rally. The three major stock indexes saw strong weekly gains, overcoming fears about the effects of the ongoing U.S. government shutdown. The S & P 500 gained roughly 1.4% for the week, while the 30-stock Dow Jones Industrial Average has added 1.5%. The tech-heavy Nasdaq Composite is up 1.4% this week as stocks tied to the artificial intelligence trade got a boost. But some individual names may have run up too far too fast. Using the CNBC Pro stock screener tool, we found the most overbought and oversold stocks on Wall Street sorted by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are generally considered overbought, meaning that a pullback could be on the horizon. A reading below 30, meanwhile, indicates that a stock is oversold and could see a near-term comeback. We also filtered for names that were up at least 5% for the week. Take a look at the most overbought names below after this week's rally: Online trading platform Robinhood made the overbought group with an RSI of nearly 76, after the stock soared about more than 20% this week. The company was added to the S & P 500 in late September, fueling investors' enthusiasm into the name. Bank of America earlier in the week upped its price target on the brokerage to $157 from $139, signaling 7.7% upside from Thursday's close. "We believe HOOD is positioned to perform well long-term as the broker continues to scale its business, launch additional products and capabilities, deepen current client relationships, and expand its TAM both domestically and internationally," analyst Craig Siegenthaler wrote. Several names that made the overbought list this week are AI hardware makers and data storage companies, including Micron, Intel , Super Micro Computer , Lam Research and Western Digital . Micron and Western Digital logged double-digit gains this week, along with Lam Research and Super Micro. Western Digital, one of the best performers in the third quarter, is the most overbought stock this week with an RSI of 87.7. It has benefitted from booming storage demand on the back of the AI rush. Micron, which has seen its stock more than double this year, rallied after reporting a beat on earnings and revenue on Tuesday along with a strong forecast for the current quarter. Overall revenue from the memory and storage maker rose 46% on a year-over-year basis during the quarter. The stock has an RSI of 81.7. To be sure, analysts' consensus price targets on Micron and Western Digital. The average price target of $179.07 on Micron from analysts polled by LSEG suggests more than 4% downside for the stock. Analysts' average price target on Western Digital suggests its shares could see a dramatic fall of about 22%, per LSEG. MU 1Y mountain Micron Technology stock performance over the past year. Another majorly overbought stock this week is Fair Isaac, the creator of the FICO score, which saw shares soar around 20% this week. With an RSI of more than 79, shares are now considered technically overbought. Fair Isaac announced a new model that will allow mortgage lenders to bypass credit bureaus for credit scores. The pop in Fair Isaac's stock during Thursday's session marked its largest percent increase since Nov. 22. Shares of the company are still down year to date despite the recent rally. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . ) A broad-based market rally, which saw major indexes gain approximately 1.4-1.5% for the week, has pushed several high-momentum stocks into technically overbought territory, signaling a heightened risk of a near-term pullback. The 14-day Relative Strength Index (RSI) is the key indicator, with several names in the AI hardware and data storage sectors appearing particularly extended. Western Digital (WDC) is the most overbought with an RSI of 87.7, and Micron (MU) has an RSI of 81.7 following a 46% year-over-year revenue increase and a strong quarterly forecast. Critically, a significant divergence exists between this technical momentum and fundamental valuation consensus; average analyst price targets compiled by LSEG suggest potential downside of over 4% for MU and a dramatic 22% for WDC. Similarly, Robinhood (HOOD) registered an RSI near 76 after its stock surged over 20% on the back of its S&P 500 inclusion and a Bank of America price target upgrade to $157. Fair Isaac (FICO) also appears overbought with an RSI above 79 following a 20% weekly gain, though it is notable that its shares remain down year-to-date despite this rally.

Key Decisions for Investors

• Investors holding high-flying stocks with RSI readings above 70, such as those in the AI hardware space, should consider trimming positions or employing hedging strategies to lock in recent gains against a potential technical correction.
• The significant divergence between strong price momentum and negative analyst price targets for Micron (MU) and Western Digital (WDC) warrants extreme caution; chasing these rallies is high-risk without a strong independent conviction on valuation.
• While Robinhood's (HOOD) rally is supported by positive fundamental catalysts, its overbought status suggests prudent investors may wait for a price consolidation before establishing or adding to long positions.
• The surge in Fair Isaac (FICO) should be assessed cautiously, as its overbought technicals are occurring in the context of a negative year-to-date performance, signaling a potential volatility trap rather than a sustained trend reversal.