A massive rally in memory chip stocks drove them to huge gains this week, but that’s also left some of the highest fliers due for a possible decline soon. The artificial intelligence trade fueled this week’s hefty gains. The S & P 500 rallied more than 2%, while the tech-heavy Nasdaq Composite closed higher by 4%. The Dow Jones Industrial Average , filled with more old economy companies, eked out a small gain on the week. But it was semiconductor memory chip and data storage stocks that roared highest, with the Roundhill Memory ETF (DRAM) ahead nearly 30% on the week. The rally came as first-quarter earnings reports revealed a bottleneck in memory chips amid surging demand. The week’s rally left several stocks overbought, determined when a stock’s relative strength index tops 70. Conversely, stocks with an RSI below 30 are considered oversold, and possibly ready to bounce. Here’s a look at the most oversold and overbought S & P 500 stocks. Memory stocks dominated the list of overbought stocks, with Qualcomm and Micron Technology among the names that surfaced. Qualcomm surged more than 23% this week, while Micron soared nearly 37% over the period, its best weekly performance since 2008 . Qualcomm has an RSI of 86, with a consensus rating of hold among analysts. It’s expected to fall 22% to reach analysts’ consensus price target. Micron has an RSI of 82, though the memory stock is rated buy by most analysts. But like, Qualcomm, the stock has run up so fast that the average price target is 23% below where the stock ended the week. Among the most oversold names was software engineering provider EPAM Systems , with an RSI of 18 after falling more than 11% this week. The stock was hurt by the company trimming its revenue growth outlook for the full year, to a range of 4% to 6.5% from an earlier forecast of 4.5% to 7.5%. EPAM is a consensus buy among analysts, and should rise nearly 70% to reach the consensus price target. Zoetis , an animal health company, is also oversold. The stock, which dropped more than 27% this week, has an RSI of nearly 15. Zoetis slid after reporting adjusted earnings in the first quarter that missed expectations. The company also cut its earnings and revenue guidance for the full year. The buy-rated stock would surge 75% if it climbed to analysts’ average price target.
