Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) stock is flashing a strong technical warning sign, with the relative strength index (RSI) soaring above 79, deep into extremely overbought territory. 

• GOOGL stock is climbing. Watch the real-time price action here. 

According to data from Benzinga Pro, shares of GOOG and GOOGL had RSI values of above 79 on Tuesday morning.  

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In technical analysis, this indicator traditionally suggests that the price has risen too quickly and a short-term pullback or consolidation period is highly probable as traders realize profits.

However, Alphabet's surge is driven by powerful fundamental catalysts, complicating the purely technical sell signal. 

Recent momentum is fueled by enthusiasm over the launch of Gemini 3, Google’s most advanced AI model, which analysts are praising for its competitive edge over OpenAI's ChatGPT. 

The Gemini 3 launch combined with reports of a multi-billion dollar deal to rent its custom tensor processing units (TPUs) to Meta Platforms, Inc. (NASDAQ:META) and a recently disclosed stake by Warren Buffett's Berkshire Hathaway, provides a solid foundation for investors’ conviction in Alphabet. 

While the technical setup favors a cooling-off period — a possible dip to test key moving averages — strong fundamentals could allow Alphabet stock to remain “overbought” for an extended period. 

For investors, Alphabet's RSI above 79 suggests caution and better entry planning  A definitive pullback signal would be the RSI crossing back below the 70 level, potentially confirming that the short-term euphoria has subsided. 

Alphabet's bull run holds for now, as AI-driven fundamentals outweigh the overbought technical signal. Investors should monitor both the price action and the 70-level RSI crossover for the true indication of whether a pullback is finally at hand.

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