As U.S. equity markets continue their relentless climb, a growing number of stocks are flashing warning signs through one of the most widely followed technical indicators: the Relative Strength Index (RSI).
Designed to measure momentum, RSI values above 70 typically indicate that a stock is overbought and may be due for a pullback.
As of early July 2025, several high-profile U.S. companies have RSI readings well above this threshold, suggesting that investor enthusiasm may be outpacing fundamentals.
🔍 What Is RSI?
The RSI is a momentum oscillator that ranges from 0 to 100. Readings above 70 suggest a stock is overbought, while readings below 30 indicate it may be oversold. While not a crystal ball, RSI is a useful tool for identifying potential reversals or pauses in price trends.
🚨 Top 5 Overbought U.S. Stocks (as of 1st July 2025)
| Company | Ticker | RSI | YTD Performance |
|---|---|---|---|
| Nvidia | NVDA | 84.3 | +92.5% |
| Super Micro Computer | SMCI | 82.7 | +108.4% |
| Advanced Micro Devices | AMD | 80.1 | +74.2% |
| Alnylam Pharmaceuticals | ALNY | 78.9 | +66.0% |
| Circle Internet Group | CIRC | 77.5 | +62.9% |
These companies have benefited from the ongoing AI and biotech booms, with Nvidia and AMD riding the wave of demand for next-gen chips, while Alnylam and Circle Internet Group have surged on strong earnings and innovation in their respective sectors.
📊 RSI Snapshot: Top 10 U.S. Stocks by RSI
| Rank | Company | Ticker | RSI | Sector |
|---|---|---|---|---|
| 1 | Nvidia | NVDA | 84.3 | Semiconductors |
| 2 | Super Micro Computer | SMCI | 82.7 | Hardware |
| 3 | AMD | AMD | 80.1 | Semiconductors |
| 4 | Alnylam Pharmaceuticals | ALNY | 78.9 | Biotech |
| 5 | Circle Internet Group | CIRC | 77.5 | Internet Services |
| 6 | Mereo BioPharma Group | MPH | 76.4 | Biotech |
| 7 | AVITA Medical | AVH | 75.2 | Healthcare |
| 8 | Microsoft | MSFT | 74.8 | Software |
| 9 | Lumentum Holdings | LITE | 73.6 | Optical Tech |
| 10 | Workiva | WK | 72.9 | Cloud Software |
📌 What This Means for Investors
While high RSI doesn’t guarantee a drop, it does suggest caution. Stocks like Nvidia and Super Micro may continue to rise in the short term, but their elevated RSI levels imply that momentum could stall or reverse if sentiment shifts or earnings disappoint.
Investors should consider pairing RSI with other indicators – such as MACD, volume trends, and earnings outlooks – before making decisions.
For long-term holders, these signals may simply be noise. But for traders, they’re a flashing yellow light.
See: WallStreetNumbers: Advanced Stock Screener & Interactive Charts