Tesla and Micron Stock Overbought as S&P 500 Hits Record High — Analysts Warn of Pullback

Tesla (NASDAQ: TSLA) and Micron Technology (NASDAQ: MU) have delivered strong gains this September, but analysts caution that both stocks may now be overbought. The S&P 500 also closed at a new record, heightening concerns of a near-term pullback.

Tesla Stock Looks Overbought After September Rally

Tesla has surged nearly 18% month-to-date, driven by excitement around the board’s proposed $1 trillion pay package for CEO Elon Musk. However, with an RSI of 75.6, Tesla is in overbought territory. Analysts suggest the recent momentum could trigger profit-taking, putting pressure on the stock despite long-term growth prospects.

Tesla Stock Chart (September 2025)

Micron Stock Surges but May Face Near-Term Pressure

Micron posted its biggest weekly gain since March 2020, soaring nearly 20% thanks to stronger-than-expected demand for DRAM and NAND memory chips. Citi recently raised its price target to $175, signaling further upside. Still, with an RSI of 81.2, Micron is now among the most overbought stocks in the S&P 500, which may lead to short-term corrections.

Micron Stock Chart (September 2025)

S&P 500 Hits All-Time High Ahead of Fed Decision

The S&P 500 closed at 6,600.21, a record high. The rally was fueled by a decline in wholesale prices and rising hopes of a 0.25% Fed rate cut next week. The index gained 1.6% for the week, but individual stocks like Tesla and Micron may face more volatility.

Other Overbought Stocks to Watch

Several other stocks also appeared on the CNBC Pro overbought list:

Company	RSI Score	Notable Catalyst
Western Digital	84.2	Storage demand rebound
Tesla	75.6	Musk pay package, EV demand
Micron	81.2	DRAM/NAND demand surge
Warner Bros. Discovery	72.8	Skydance takeover interest
Live Nation	71.9	Strong event ticket sales

Should Investors Take Profits Now?

While the overall market outlook remains positive, analysts warn that overbought names like Tesla, Micron, and Western Digital could face short-term selling pressure. Long-term investors may still benefit from trends such as AI-driven demand, energy transition, and consumer spending, but traders should keep an eye on RSI levels.

Frequently Asked Questions (FAQ)

Why is Tesla stock considered overbought right now?

Tesla’s RSI is above 70 (currently 75.6), a level that typically signals overbought conditions and a risk of pullback.

What is Micron’s RSI and why does it matter?

Micron’s RSI is 81.2, one of the highest in the S&P 500. A high RSI suggests the stock may be vulnerable to profit-taking.

Which stocks are most overbought in September 2025?

Western Digital, Micron, Tesla, Warner Bros. Discovery, and Live Nation are among the most overbought stocks this month.

What does an RSI above 70 mean for investors?

An RSI above 70 suggests a stock may be overbought. While not a guarantee of a decline, it often signals caution for short-term traders.