Artificial intelligence players are some of the most oversold stocks this week as chipmakers dragged down the S & P 500 . The broad market index posted a weekly loss of 1.6%, and the iShares Semiconductor ETF (SOXX) shed more than 10% in the period as investors begin to doubt companies’ major spending on AI. A report of delays in Alphabet’s latest AI model and Taiwan Semiconductor Manufacturing ‘s announcement of an increase in its spending forecasts led investors to start selling off tech shares. That said, some stocks may have fallen too far and could see a rebound. CNBC Pro screened for S & P 500 stocks with a relative strength index, or RSI, of less than 30, indicating they are in oversold territory. Oracle sits at the top of the table with an RSI at 17.4. The software company has fallen 10% this week, hitting a new 52-week low on Friday. Oracle has sought to raise more money to pay for its AI buildout. Last month, the company announced plans to raise $40 billion through debt and equity financing. At the time, Oracle also reported nearly $24 billion in negative free cash flow for the fiscal year. Despite these issues, Wall Street still recommends buying the stock. According to LSEG, 35 out of 44 analysts rated the stock as a buy. Super Micro Computer is another tech stock on the list with an RSI at 25.3, falling more than 14% this week. The server manufacturer has also been affected by the lackluster confidence in AI spending. Last month, Super Micro announced plans to raise $7 billion in equity-related financing deals to help it pay for hardware component purchases. According to LSEG, 13 of the 22 analysts following the stock gave it a hold rating. International Business Machines lost 26% this week after a disappointing preliminary earnings report on Tuesday. IBM reported adjusted earnings of $2.93 a share on revenue of $17.2 billion, falling short of analysts’ expectations. Shares fell 25% Tuesday for their worst session ever following the news. Despite the market’s poor performance this week, some S & P 500 stocks remained in overbought territory — with an RSI of more than 70. Overbought stocks may be too far stretched to the upside and thus could be due for a pullback. Cintas sits near the top of the list with an RSI at 77.2. Shares climbed almost 14% this week Cintas announced its fourth quarter results on Wednesday, topping analysts’ earnings and revenue expectations. Shares received another boost Thursday when Bank of America upgraded the firm to buy from neutral. According to LSEG, analyst consensus is split as 10 analysts gave the stock a buy rating, 10 analysts gave the stock a hold rating, and one analyst recommended selling. PayPal is another company on the list with an RSI score of 76.4, and it climbed 22% this week. PayPal shares jumped 17% on Wednesday after CNBC’s David Faber reported that Stripe and Advent International made a joint bid to buy PayPal at $60.50 per share in an all-cash deal valued at $53.4 billion.
These are the most oversold stocks after a rough week on Wall Street
