As of Dec. 13, 2024, three stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

Broadcom Inc (NASDAQ:AVGO)

• On Thursday, Broadcom posted better-than-expected earnings for its fourth quarter. The company said it sees first-quarter revenue of approximately $14.6 billion, versus the $14.612 billion estimate. The company also issued adjusted EBITDA guidance of approximately 66 percent of projected revenue for the first quarter. "Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, CEO of Broadcom Inc. The company's shares gained around 6% over the past five days and has a 52-week high of $186.42.
• RSI Value: 75.34
• AVGO Price Action: Shares of Broadcom fell 1.4% to close at $180.66 on Thursday.
• Benzinga Pro's real-time newsfeed alerted to latest AVGO news.

Bitdeer Technologies Group (NASDAQ:BTDR)

• On Dec. 6, Northland Capital Markets analyst Mike Grondahl maintained Bitdeer Technologies with an Outperform and raised the price target from $14 to $20.. The company's stock gained around 102% over the past month and has a 52-week high of $24.68.
• RSI Value: 80.58
• BTDR Price Action: Shares of Bitdeer Technologies gained 7.2% to close at $21.37 on Thursday.
• Benzinga Pro's charting tool helped identify the trend in BTDR stock.

SoundHound AI Inc (NASDAQ:SOUN)

• On Dec. 5, SoundHound AI announced the deployment of its voice AI Smart Ordering system at all 130 Torchy's Tacos location. The company's stock gained around 118% over the past month and has a 52-week high of $16.07.
• RSI Value: 74.37
• SOUN Price Action: Shares of SoundHound gained 0.9% to close at $13.67 on Thursday.
• Benzinga Pro's signals feature notified of a potential breakout in SOUN shares.

Read This Next:

• Jim Cramer Says This CEO 'Built An Amazing Company,' Recommends Buying Netflix