SOX Hits 82 RSI Extreme After 41% Rally, Warning Nvidia-Led Pullbacks

The PHLX SOX index has reached parabolic heights with a 14-day RSI of 82—the highest since 2017—after a 17-day winning streak and 41% gain, placing it over 40% above its 200-day moving average, the widest gap since 2000. Led by Nvidia and Intel's record highs on strong AI demand, BTIG's Jonathan Krinsky flags textbook overbought signals suggesting sharp short-term reversals. Despite AI-driven long-term upside, extreme momentum raises downside risks for chip stocks amid broad semiconductor strength.