Oversold S&P 500 stocks after a rough week on Wall Street

Oracle (RSI 17.4), Super Micro Computer (RSI 25.3) and IBM (RSI 26) topped CNBC’s list of S&P 500 stocks in oversold territory after the index fell 1.6% last week, signaling potential near‑term rebounds for the most battered tech names.

Market backdrop and why stocks turned oversold

The S&P 500 posted a 1.6% weekly decline as chipmakers dragged the index lower, while the semiconductor‑focused iShares ETF (SOXX) shed more than 10% in the same period [1]. Investor confidence in AI‑related spending waned after a delayed Alphabet AI model and a spending‑forecast increase from Taiwan Semiconductor Manufacturing, prompting a sell‑off in tech shares [1]. CNBC Pro screened S&P 500 constituents for a 14‑day relative strength index (RSI) below 30, a technical signal that suggests a stock may be “oversold” and could rebound [1].

Oracle led the oversold list with an RSI of 17.4 after a 10% drop that pushed the software giant to a new 52‑week low on Friday [1]. The decline came amid Oracle’s plan to raise $40 billion in debt and equity to fund its AI buildout, alongside a reported $24 billion negative free‑cash‑flow for the fiscal year [1]. Despite these pressures, 35 of 44 analysts still rated Oracle a buy, according to LSEG [1].

Super Micro Computer fell more than 14% this week, landing an RSI of 25.3 [1]. The server maker’s slide reflected broader doubts about AI hardware demand, even as it announced a $7 billion equity financing round to secure component purchases [1]. LSEG shows 13 of 22 analysts rating the stock as a hold [1].

IBM suffered the steepest percentage loss, tumbling 26% after a preliminary earnings release that missed expectations—$2.93 earnings per share on $17.2 billion revenue versus analyst forecasts [1]. The stock’s RSI settled at 26, marking it as oversold despite the earnings miss [1]. Only a minority of analysts maintained a hold rating for IBM [1].

What to watch

• AI spending outlook: Updates from major chipmakers or AI‑focused firms (e.g., Alphabet, TSMC) could shift sentiment on the oversold tech names.
• Upcoming earnings: Watch the next quarterly reports from Oracle, Super Micro and IBM for any deviation from consensus that might validate a rebound.
• Sector momentum: The semiconductor ETF’s (SOXX) performance will continue to influence broader market risk appetite; a reversal in its trend could lift the oversold stocks.

These oversold readings highlight that the week’s market stress may have pushed several high‑profile tech stocks beyond the point of short‑term technical exhaustion, setting the stage for potential price corrections if investor sentiment improves.