Alphabet Among Top Overbought Stocks as Tech Rally Faces Valuation Pressure
Market watchers are flagging potential bubbles in tech stocks as Alphabet joins the ranks of severely overbought S&P 500 components. The Nasdaq Composite's seven-month winning streak snapped with a 1.5% November decline, while the Dow and S&P 500 clung to marginal gains.
Investors are scrutinizing AI-related valuations amid unanswered questions about when massive infrastructure investments will translate to profits. Alphabet's surge followed waning enthusiasm for OpenAI's offerings, with traders instead betting on Gemini 3 and proprietary Tensor Processing Units.
The CNBC Pro screener identified several equities with relative strength indexes above 70 - a traditional overbought signal. Ralph Lauren appeared alongside Alphabet in this cohort, suggesting concentrated momentum plays despite broader market stability.