As of July 31, 2026, 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.

InterDigital Inc (NASDAQ:IDCC)

  • On July 30, InterDigital reported better-than-expected second-quarter financial results and issued third-quarter adjusted EPS guidance above estimates. Also, the company raised its FY26 guidance above estimates. “We have delivered another outstanding quarter, with continued momentum across our business, including our new agreement with Amazon, driving annualized recurring revenue1 to a record $626 million,” commented Liren Chen, InterDigital CEO and President. The company’s stock gained around 17% over the past five days and has a 52-week high of $412.60.
  • RSI Value: 80.6                                
  • IDCC Price Action: Shares of InterDigital rose 16.2% to close at $303.33 on Thursday.
  • Edge Stock Ratings: 43.83 Momentum score with Value at 27.83.

AstroNova Inc (NASDAQ:ALOT)

  • On June 17, AstroNova announced it will be acquired by Arcline. Jorik Ittmann, President and Chief Executive Officer of AstroNova, said, "This transaction marks an important milestone for AstroNova. Our teams have worked hard over the last year to strengthen the business and position the Company for sustainable growth. Arcline’s interest in our entire enterprise – from our technologies, products, and strategy to our people and customers – makes them the right partner for AstroNova’s next chapter." The company’s stock gained around 220% over the past six months and has a 52-week high of $28.98.
  • RSI Value: 85.2
  • ALOT Price Action: Shares of AstroNova gained 0.6% to close at $28.84 on Thursday.

Perfect Corp (NYSE:PERF)

  • On July 27, Perfect posted in-line quarterly earnings. Ms. Alice H. Chang, Founder, Chairwoman, and Chief Executive Officer of Perfect Corp., said, “Perfect Corp. continues to prioritize the advancement of our consumer (B2C) and enterprise (B2B) businesses through AI-driven innovation. While the rapid evolution of AI is creating both opportunities and challenges across the sector, ongoing demand for Generative AI and Agentic AI solutions reinforces our commitment to developing products and services that address these evolving needs. We also remain focused on strengthening our technology capabilities and expanding our solutions to pursue opportunities across both business segments.” The company’s stock gained around 16% over the past month and has a 52-week high of $2.16.
  • RSI Value: 74.3
  • PERF Price Action: Shares of Perfect gained 0.3% to close at $1.93 on Thursday.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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