The most overbought stocks in the information technology sector presents an opportunity to go short on these overvalued companies.

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.

Here's the latest list of major overbought players in this sector.

SoundHound AI, Inc. (NASDAQ:SOUN)

• SoundHound AI secured new financing to strengthen balance sheet. The company's stock has a 52-week high of $18.14 .
• RSI Value: 77.30
• SOUN Price Action: Shares of SoundHound AI jumped 13.8% to settle at $2.06 on Monday and added 1.5% in after-hours trading.

Applied Digital Corporation (NASDAQ:APLD)

• Applied Blockchain recently posted Q2 adjusted loss of $0.04 per share. The company's stock has a 52-week high of $5.00.
• RSI Value: 83.17
• APLD Price Action: Shares of Applied Digital closed at $3.20 on Monday and added 3.1% in after-hours trading.

Semrush Holdings, Inc. (NYSE:SEMR)

• SEMrush Hldgs, during November, posted a Q3 loss of $0.06 per share. The company has a 52-week high of $19.41.
• RSI Value: 72.06
• SEMR Price Action: Shares of Semrush Holdings rose 3.9% to close at $9.80 on Monday and added 2% in after-hours trading.

SecureWorks Corp. (NASDAQ:SCWX)

• Secureworks, last month, lowered its FY23 guidance. The company's 52-week high is $16.23.
• RSI Value: 70.96
• SCWX Price Action: Shares of SecureWorks gained 3.4% to close at $7.62 on Monday.

CoreCard Corporation (NYSE:CCRD)

• CoreCard, during November, posted better-than-expected Q3 results. The company has a 52-week high of $37.09.
• RSI Value: 71.48
• CCRD Price Action: Shares of CoreCard rose 1.7% to settle at $33.32 on Monday and lost 0.2% in after-hours trading.

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