Semiconductor stocks emerged as one of the most overbought cohorts this week, driving both the S&P 500 up 0.55% and the tech-heavy Nasdaq Composite up 1.50%, with index highs reached on Thursday amid optimism regarding potential peace talks between the U.S. and Iran. CNBC Pro identified overbought names using a 14-day Relative Strength Index, defining stocks with an RSI above 70 as overbought, which signaled a potential pullback may be coming after heavy investor inflows into chipmakers. The iShares Semiconductor ETF (SOXX) recorded its 18th consecutive positive session, ending the week up 11.04%, reflecting the sector's dominance in recent market gains and narrowing market leadership to primarily just semiconductor names. Key Texas Instruments surged following a strong first-quarter earnings beat and upbeat guidance citing high demand for its analog chips in AI data centers, while shares of ON Semiconductor, NXP Semiconductors, Microchip Technology, Advanced Micro Devices, and Cisco also made the overbought list based on their RSI metrics. Although AMD stock rose despite no specific company news, Intel's recent earnings highlighted continued strong demand for central processing units as companies build AI capabilities, reinforcing sector-wide optimism. West Pharmaceutical Services also joined the overbought list with an RSI of 82.7 after beating quarterly estimates with adjusted earnings of $2.13 per share on revenue of $844.9 million. Beyond chips, United Rentals reached an RSI of 84 after boosting its full-year sales forecast between $16.9 billion and $17.4 billion as the company anticipated momentum heading into its busiest season. Conversely, market leadership was described as constricted by Cameron Dawson, chief investment officer at NewEdge Wealth, who noted the market had shifted from a broad "Mag Seven" rally to one dominated almost exclusively by semiconductors doing well. Meanwhile, aerospace and defense stocks like Northrop Grumman, Lockheed Martin, RTX, and L3Harris Technologies fell into oversold territory as Middle East tensions appeared to thaw following a White House agreement extending the Israel-Lebanon ceasefire. The article concludes with broader context on market breadth, noting that Micron and Qualcomm were among the most overbought stocks this week alongside Cisco being the top pick in the S&P 500, while Tractor Supply fell to an RSI of 21.2 due to disappointing first-quarter results showing weak nonessential spending as consumers pulled back amid economic uncertainty. The piece frames these movements against a backdrop of geopolitical developments regarding peace negotiations involving the U.S., Iran, and Pakistan, with official talks scheduled in Islamabad involving Jared Kushner and Steve Witkoff, while also highlighting that some investors worry peak defense spending may have been reached if congressional control changes in midterm elections later this year.