As of Oct. 20, 2025, two 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.
Wolfspeed Inc (NYSE:WOLF)
- On Sept. 29, Wolfspeed announced a reorganization plan, with shareholders receiving substituted new common stock. Wolfspeed's court-approved plan will slash its debt by 70%, from $6.5 billion to $2 billion, and cut interest payments by about 60%. As part of the process, Wolfspeed will reincorporate from North Carolina to Delaware. The company's stock gained around 1,284% over the past month and has a 52-week high of $36.60.
- RSI Value: 73
- WOLF Price Action: Shares of Wolfspeed fell 4.4% to close at $31.00 on Friday.
- Edge Stock Ratings: 99.39 Momentum score.
Applied Digital Corp (NASDAQ:APLD)
- On Oct. 9, Applied Digital reported first-quarter revenue of $64.22 million, beating analyst estimates of $49.99 million, according to Benzinga Pro. The digital infrastructure provider reported a first-quarter adjusted loss of three cents per share, beating analyst estimates for a loss of 13 cents per share. "We feel this third lease validates our platform and execution, positioning Applied Digital as a trusted strategic partner to the world's largest technology companies," said Wes Cummins, chairman and CEO of Applied Digital. The company's stock gained around 40% over the past month and has a 52-week high of $40.20.
- RSI Value: 72.6
- APLD Price Action: Shares of Applied Digital fell 6.6% to close at $34.24 on Friday.
Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.
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