Chip stocks under pressure: Twelve semiconductor names with oversold signals (SMH:NASDAQ)

AI and semiconductor stocks came under heavy selling pressure on Thursday, with the Philadelphia Semiconductor Index (SOX) falling about 9.5% as investors reassessed the outlook for data center spending and AI infrastructure following the U.S. midterm elections. Concerns over increased political scrutiny of data center development and infrastructure investments added to pressure on technology stocks, pushing the Nasdaq Composite (COMP:IND) down more than 4% and into correction territory. Below is a list of the top 12 semiconductor stocks ranked by their lowest Relative Strength Index (RSI), highlighting companies with particularly weak price momentum. Intel Corporation (INTC) tops the list with an RSI of 23, followed by Cerebras Systems Inc. (CBRS) at 25 and Marvell Technology, Inc. (MRVL) at 27. Teradyne, Inc. (TER) and ACM Research, Inc. (ACMR) round out the top five, with RSI readings of 27 and 28, respectively. Lam Research Corporation (LRCX) follows with an RSI of 30, while Veeco Instruments Inc. (VECO) has an RSI of 31. Astera Labs, Inc. (ALAB), Kulicke and Soffa Industries, Inc. (KLIC), SiTime Corporation (SITM), Axcelis Technologies, Inc. (ACLS) and Onto Innovation Inc. (ONTO) complete the list, each with an RSI of 32. Several stocks featured have also recorded sharp declines during Thursday's session, including Intel, which fell 8%, Astera Labs, which dropped about 17%, and Veeco Instruments, which declined 7%. Chipmakers bore the brunt of Thursday's technology selloff, with Advanced Micro Devices (AMD) tumbling about 15%, while Broadcom (AVGO), Nvidia (NVDA) and Taiwan Semiconductor Manufacturing (TSM) each fell around 7%. AI infrastructure stocks also faced significant pressure, with Sandisk (SNDK) dropping 18%, Nebius Group (NBIS) and Astera Labs each losing about 17%, and Micron Technology (MU) declining 13%. The weakness extended to chip equipment and component makers, with SiTime falling 11% despite reporting better-than-expected quarterly results, while Veeco Instruments declined 7% after posting a quarterly earnings miss. The Relative Strength Index is a momentum oscillator that measures the velocity and magnitude of price changes, plotting them on a scale from 0 to 100. RSI compares the magnitude of recent gains to recent losses over a chosen lookback period, typically 14 days. Readings below 30 generally suggest that a stock may be oversold, while readings of 70 or above are generally considered a signal that a stock may be overbought and potentially poised for a pullback. Here is the list of the top 12 semiconductor stocks ranked by their lowest RSI: More on chip stocks Investors reassessed data center spending and AI infrastructure prospects after the U.S. midterm elections. Concerns about increased political scrutiny of data center development and infrastructure investments added pressure. Intel had the lowest RSI at 23, followed by Cerebras Systems at 25, Marvell Technology and Teradyne at 27, and ACM Research at 28. The article lists 12 stocks with RSI readings from 23 to 32. Readings below 30 generally suggest a stock may be oversold. Intel, Cerebras Systems, Marvell Technology, Teradyne, and ACM Research had readings below 30.

Chip stocks under pressure: Twelve semiconductor names with oversold signals (SMH:NASDAQ)

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