As of Aug 28, 2024, two 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.

Ambarella Inc (NASDAQ:AMBA)

• On Aug. 27, Ambarella reported better-than-expected second-quarter adjusted EPS and sales. "In our second quarter, we achieved record revenue for our edge AI inference products, and we are anticipating double-digit sequential growth in our total revenue for the third quarter," said Fermi Wang, President and CEO. The company's stock gained around 8% over the past five days and has a 52-week high of $76.36.
• RSI Value: 72.06
• AMBA Price Action: Shares of Ambarella gained 3.2% to close at $52.79 on Tuesday.

Box Inc (NYSE:BOX)

• On Aug. 27, Box reported better-than-expected second-quarter financial results and issued FY25 guidance above estimates. "As we enter the era of Intelligent Content Management, Box is delivering a singular platform that can power the lifecycle of content with intelligence built right in," said Aaron Levie, co-founder and CEO of Box. The company's stock gained around 4% over the past month and has a 52-week high of $30.94.
• RSI Value: 75.29
• BOX Price Action: Shares of Box gained 0.6% to close at $28.82 on Tuesday.

• $4.5M Bet On This Consumer Cyclical Stock? Check Out These 3 Stocks Executives Are Buying