Nvidia is one of the most overbought stocks on Wall Street after this week's massive rally

Published Fri, Mar 8 20241:48 PM ESTUpdated Fri, Mar 8 20241:54 PM EST

Nvidia shares may be due for a pullback after another red hot start to the year. Shares have rallied 77% year to date as investors amp up bets on the chipmaker's dominant artificial intelligence position. This week alone, the semiconductor behemoth has surged 6% even as technology stocks and the major averages head for weekly declines. But Nvidia may be getting ahead of itself after nine-straight weeks of gains, according to this commonly watched metric. Using our stock screener tool, CNBC Pro searched for the most overbought and oversold names on Wall Street based on their 14-day relative strength index, or RSI. Assets with a 14-day RSI greater than 70 are considered overbought, and potentially at risk of a pullback. Here are some of the stocks that made the list: Howmet Aerospace and General Electric are the most overbought stocks, with RSIs exceeding 89. General Electric is up more than 6% this week and added nearly 1% on Friday after JPMorgan upgraded shares to overweight and said it expects the company's outperformance to continue. Nvidia was the fourth-most overbought stock on the list with an RSI reading of about 86. The stock pulled back about 6% during midday trading as semiconductor stocks took a breather. The stock has been a major contributor to 2024's rally, gaining more than $1 trillion in market value year to date. Its appreciation has accounted for about 30% of the S & P 500's aggregate gain this year, according to LSEG data. NVDA 5D mountain Nvidia shares this week Other companies that made the overbought list include Jabil , Leidos Holdings and American Express . There are also three stocks in oversold territory, including Apple . A stock is considered oversold when its RSI is below 30 and could signal a buying opportunity. The iPhone maker, with an RSI of about 26, added roughly 2% on Friday, reversing some of its week-to-date gains after getting hit with a $2 billion fine and suffering a decline in sales in China. The stock is slated for a 4% weekly decline and is coming off its longest losing streak in more than two tears. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.