Tech Giants with Troubling Momentum: A Closer Look This Month

Author: Owen Jenkins Updated: 09-09-2025 09:33 AM

Tech Stocks to Watch in the Current Market

This month, two tech stocks are catching the eye of investors, particularly those who focus on momentum as a critical factor in their trading strategies. In the fast-paced environment of the technology sector, quick assessments can often lead to significant investment decisions.

Understanding Momentum Indicators

One of the vital tools in analyzing stocks is the Relative Strength Index (RSI). This momentum indicator evaluates a stock's performance by comparing its strength on days when prices rise with its strength on days when prices decline. Traders use the RSI to gauge potential price movements. Generally, a stock is seen as overbought when its RSI surpasses 70, signaling a cautionary alert for traders.

Current Highlights in Tech Stocks

Monitoring overbought stocks can provide critical insights, especially in the fast-evolving tech sector. Below are some significant players currently on investors’ radar.

Wolfspeed Inc (WOLF)

Wolfspeed recently achieved court approval for exiting Chapter 11 bankruptcy protection. According to CEO Robert Feurle, this significant milestone allows the company to strengthen its capital structure and pursue growth strategies efficiently. The stock remained stable with a slight gain of about 1% over the past week, marking a notable 52-week high of $17.45.
RSI Value: 71.7
WOLF Price Action: On the most recent trading day, shares closed at $1.23, reflecting a marginal decline of 0.4%.
Momentum score stands at 1.63, indicating mixed signals.

Nebius Group NV (NBIS)

Nebius made headlines with a significant announcement regarding a $19.4 billion 5-year GPU infrastructure contract with Microsoft. CEO Arkady Volozh noted that the contract enhances their existing AI cloud services and positions the company favorably for future partnerships with leading AI enterprises. The stock surged approximately 144% over six months, and it recently reached a stunning 52-week high of $75.96.
RSI Value: 77.7
NBIS Price Action: The stock concluded trading at $64.06 recently.

Impact of Recent Developments

Both Wolfspeed and Nebius have maintained significant momentum due to their recent announcements. Investors should pay close attention to the trends in the tech industry and leverage momentum indicators like the RSI to make informed decisions.

Exploring Other Potential Investments

Aside from WOLF and NBIS, investors should not overlook Enerflex Ltd (EFXT). It's crucial to evaluate its position in the market continuously, especially given the current volatility observed across tech stocks. Monitoring these companies can offer valuable insights into broader market trends.

Frequently Asked Questions

What does the RSI indicate?

The RSI indicates whether a stock is overbought or oversold, helping traders assess potential price movements.

Which companies are highlighted for investor attention this month?

This month, Wolfspeed Inc (WOLF) and Nebius Group NV (NBIS) are highlighted for their significant developments.

Why is momentum important in trading?

Momentum helps investors identify trending stocks for potential short-term gains based on price movements.

What are the recent achievements of Nebius Group?

Nebius secured a substantial contract with Microsoft, propelling its stock value and highlighting its growth potential in the AI sector.

What should investors do when a stock is overbought?

Investors might consider reassessing their positions or setting stop-loss orders to manage risks when a stock is identified as overbought.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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