Wake your neighbors, it’s earnings season in America, and several of the tech sector's most prominent companies are reporting this week.



While investors are enamored with the conference calls of hyperscalers like NVIDIA and Microsoft, it's frequently the smaller companies that generate the most significant outperformance.



But knowing when to sell is even more important than knowing when to buy, and we've collected a list of 5 different lesser-known tech stocks that appear to be at the peak of their rallies.



Here are 5 high-flying tech stocks that investors should consider for profit-taking.



<h2>MaxLinear Inc.</h2>



MaxLinear (NASDAQ:MXL) is a (formerly) small-cap chipmaker that previously focused on broadband solutions. However, a recent pivot to AI infrastructure has changed the company's fortunes in the market’s eyes, and now the $5.8 billion company is valued as a fast-growing AI stock rather than a moribund broadband chip stock.



MaxLinear's recent earnings report lends credence to this growth story: the company beat EPS and revenue projections and announced Q2 2026 guidance that exceeded market expectations. However, while AI infrastructure growth is impressive, the stock is extremely overvalued relative to its industry peers, and technical signals are pointing to an overextended rally.



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The stock soared nearly 80% following its Q1 2026 earnings release, but the next day, it posted a bearish engulfing candle, a common reversal signal on a candlestick chart. The Relative Strength Index (RSI) continues to drift deeper into Overbought territory, and the Moving Average Convergence Divergence (MACD) indicator shows that wild volatility is likely to be the short-term norm.



MXL shares are up more than 200% year-to-date (YTD), so this is an ideal place for long-term shareholders to take profits.



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<h2>Texas Instruments Inc.</h2>



Texas Instruments (NASDAQ:TXN) is one of the rare AI-adjacent companies to be a lean, mean compounding machine. During its Q1 2026 earnings release, management highlighted free cash flow of more than $4.4 billion, with Q1 operating cash of over $1.5 billion. Data center revenue also soared more than 90%, and Q2 guidance came in above expectations.



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Despite missing revenue projections, TXN shares jumped 20% following its earnings report, a market reaction that may have been irrationally exuberant. The stock has already given up a significant portion of its post-earnings gain, and technical indicators point to further downside.



The RSI is still extended into overbought territory, and the MACD is showing signs of topping out. Texas Instruments still has strong long-term growth prospects, but the short-term metrics indicate slowing momentum and an impending pullback.



<h2>Atomera Inc.</h2>



Atomera Inc. (NASDAQ:ATOM) is the smallest company on our list today, with a market cap of just $280 million and no profits as of yet. The company's valuation lies in its proprietary Mears Silicon Technology (MST), which is designed to increase the efficiency and speed of semiconductors. Pricing in potential is always a tricky endeavor in the tech sector, but ATOM shares are up an astonishing 220% YTD.



However, the company's 2025 revenue was a paltry $65,000 (yes, thousand), and losses were estimated at $20 million. During its Q2 2025 earnings conference call, management expects to announce new licensing deals starting later this year. But revenue from these deals is likely still years away from materializing, and ups and downs along the way are inevitable for small-cap tech stocks.



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When small-cap pre-profit stocks like Atomera produce parabolic gains without material catalysts, it’s often because they're moving in sympathy with larger peers. ATOM shares received an earnings boost in early February following the company's Q4 2025 results, but this current spike occurred with Q1 2026 results still over a week away. The stock pulled back after its previous earnings release, with an overbought RSI and bearish MACD crossover hinting at the momentum flip.



A similar situation appears to be unfolding here as well, with the RSI getting overextended and the MACD showing waning momentum. Unless the company posts a blowout Q1 2026 report next week, it’s likely ATOM shares will pull back to the 50-day moving average.



<h2>Skywater Technology Inc.</h2>



Skywater Technology (NASDAQ:SKYT) is a small-cap semiconductor foundry with a $1.50 billion market cap and annual sales of just over $440 million. The company was one of the AI industry's darlings in 2025, gaining more than 400% between the April Liberation Day lows and the start of the new year.



But the stock is actually down 7% in the last three months, and it appears the company is being left behind by some of its larger (and more profitable) competition.



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Despite showing strength above the 50-day moving average, SKYT shares have formed the dreaded double top pattern, with the current rally topping out right below the previous all-time high of $34.78 from January. The stock is now testing support at the 50-day MA, and the RSI and MACD are flashing signs of momentum fatigue. If the 50-day MA doesn't hold here, SKYT shares likely face swift selling pressure, so taking profits here is probably the most prudent move.



<h2>ARM Holdings PLC</h2>



It's been a roaring start to the year for semiconductor giant ARM Holdings (NASDAQ:ARM); the stock is up more than 80% YTD, and the company reported record revenue during its fiscal Q3 2026 earnings report back in February. The $1.24 billion in quarterly revenue represented a 26% YOY advance, and data center royalties more than doubled from the previous period.



However, these figures were only slightly above analysts' expectations, and the upcoming fiscal Q4 2026 release on May 6 now needs to be a blowout to justify the company's current valuation of 235 times forward earnings and 52 times sales.



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ARM shares have rocketed higher in the last three months thanks to the semiconductor super rally, but the stock is starting to see fading upward momentum that often precedes a pullback. The gap left by the April 24 surge has already been filled, and shares remain well above trend. The MACD is starting to show weakening momentum, and while the RSI has receded below 70, the stock is still heavily overbought.



Image via Shutterstock

The article discusses five overbought tech stocks—MaxLinear (MXL), Texas Instruments (TXN), Atomera (ATOM), CUB, and AME—suggesting they are ripe for profit-taking due to overextended rallies and technical signals indicating potential pullbacks. MXL has surged over 200% YTD but shows signs of being overvalued. TXN, despite strong cash flow, has seen irrational exuberance post-earnings. ATOM, a small-cap with no profits, has gained 220% YTD but faces revenue challenges. The article emphasizes the importance of knowing when to sell in the current market environment.

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Maxlinear

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5 Overbought Tech Stocks to Sell for Profit