tech
January 31, 2026
Software shares are among the most oversold stocks in the S&P 500
Software giants such as Intuit and Palantir were among this week's most oversold stocks. Memory stocks topped CNBC's screen of overbought names.
TL;DR
- Software stocks like Intuit and Palantir are identified as oversold, with an RSI below 30, indicating potential for a rebound.
- Fears surrounding artificial intelligence (AI) are contributing to the decline in software company valuations.
- Palantir experienced a significant stock price drop despite a strong prior rally, with analysts maintaining underperform ratings.
- Other oversold software companies include Paycom Software, Tyler Technologies, Salesforce, and ServiceNow.
- Memory stocks, such as Sandisk and Lam Research, are considered overbought, with notable price increases driven by strong earnings and demand for data center compute.
- Sandisk reported solid earnings growth, particularly in its data center business, and provided strong revenue guidance.
- Seagate Technology is also identified as overbought following strong fiscal second-quarter results.
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