Top 2 Tech Stocks That May Crash In Q2

As of May 12, 2025, 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.

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Astera Labs Inc ALAB

On May 6, Astera Labs posted better-than-expected quarterly results. “Astera Labs started the year strong, with Q1 revenue growing 13% sequentially and 144% year-over-year, and exceeding our first quarter guidance for gross margin and earnings per share,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. The company's stock jumped around 20% over the past month and has a 52-week high of $147.39.
RSI Value: 70.6
ALAB Price Action: Shares of Astera Labs closed at $71.20 on Friday.
Edge Stock Ratings: 34.53 Momentum score with Value at 7.74.

Microchip Technology Inc MCHP

On May 8, Microchip Technology reported better-than-expected fourth-quarter sales results and issued first-quarter EPS and revenue guidance above estimates. Steve Sanghi, Microchip’s CEO and President commented, Our March quarter revenue of $970.5 million exceeded the midpoint of our guidance, and we believe marks the bottom of this prolonged industry down cycle for Microchip.” The company's stock gained around 42% over the past month and has a 52-week high of $100.56.
RSI Value: 80.2
MCHP Price Action: Shares of Microchip Technology closed at $55.33 on Friday.

Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.

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