The stocks of Oracle, Super Micro Computer and IBM have suffered a tough week on Wall Street, prompting a look at whether it's time to invest in these oversold stocks.
We analyzed the lowest-performing stocks in the wake of a tumultuous week on Wall Street, where confidence in spending on Artificial Intelligence (AI) has begun to wane.
AI players are among the week's lowest-performing stocks, as chip manufacturers drag down the S&P 500. The question is whether these stocks have fallen too far and could see a rebound.
CNBC Pro identified the S&P 500 stocks with an RSI (relative strength index) below 30, indicating they are in oversold territory. Oracle tops the list with an RSI of 17.4.
Despite Oracle's financial woes, including the need to raise $40 billion for its AI expansion and a $24 billion cash flow shortfall in its last fiscal cycle, Wall Street continues to recommend buying the stock.
On the other hand, both Super Micro Computer and International Business Machines (IBM) have been impacted by the doubt surrounding spending on AI, although with different reactions. IBM lost 26% in a week following a poor showing in its prior earnings report, while Super Micro Computer has recovered after a 14% drop.