Apple’s gains this week have made the iPhone maker one of the most overbought stocks on Wall Street, with its newly announced move into artificial intelligence pushing its shares above $200. Apple shares rose nearly 8% this week after launching a slew of new artificial intelligence features at its annual Worldwide Developers Conference. It was also the second most overbought stock on Wall Street this week, based on the 14-day relative strength index (RSI). CNBC Pro uses its stock screener tool to search for the most overbought and oversold stocks. Stocks with a 14-day RSI above 70 are considered overbought, indicating that the stock price may soon decline. A reading below 30 usually indicates that the stock is oversold and may rebound. In fact, a wave of enthusiasm after the conference sent Apple to a record closing price on Tuesday as investors learned about the company’s artificial intelligence enhancements, including ChatGPT, which allows Siri to tap into OpenAI. According to LSEG, the stock currently has an RSI of nearly 83, and analysts expect the stock to drop more than 3%. Apple’s surge came as the S&P 500 and Nasdaq Composite ended the week up more than 1% and 3%, respectively. The 30-stock Dow Jones Industrial Average is the only laggard and will end the week down less than 1%. Other overbought stocks this week include Nvidia, Hewlett Packard Enterprise and TJ Maxx. Below is the complete list. Broadcom shares are up about 20% this week. The company’s fiscal second-quarter revenue and profit topped Wall Street expectations. The chipmaker also announced a 10-for-1 stock split on Wednesday. This week, Bank of America even predicted that Broadcom may soon join the likes of Nvidia and Microsoft in the so-called “trillionaire club.” As of Friday, the company’s market capitalization was just under $800 billion. The 14-day RSI of Broadcom stock price this week is about 84, indicating that it is seriously overbought. Analysts expect a slight rise from current levels, with consensus price targets expected to rise around 5%, according to London Stock Exchange (LSEG) data. Shares could rise nearly 55% in 2024. The stock is losing some momentum. The average price target implies about 6% downside from now. Among oversold stocks, aerospace and defense company Northrop Grumman tops the list this week, with its 14-day RSI around 17. Things are forecast to improve thereafter, with consensus estimates of upside near the 20% price target, according to the London Stock Exchange (LSEG). Last month, the defense giant raised its quarterly dividend by 10% to $2.06 per share. This marks Northrop Grumman’s 21st consecutive annual dividend increase. The stock currently offers a dividend yield of nearly 2%. Other oversold stocks this week include Tyson Foods and Paycom.
