Undervalued Tech Stocks with Oversold RSI Levels: A December Buy Opportunity

The current tech sector is marked by divergent trajectories. While AI megacaps like Alphabet, Nvidia, and TSMC dominate headlines with their long-term growth narratives, a compelling case is emerging for short-term momentum reversal in undervalued stocks. Three names-Motorola Solutions, Zscaler, and Nutanix-stand out as candidates for December buying, driven by oversold RSI levels, improving fundamentals, and analyst optimism. This analysis explores their potential, contrasting them with the overbought positioning of AI megacaps to highlight strategic sector rotation opportunities.

Motorola Solutions: A Buy on Strong Fundamentals and Oversold Momentum

Motorola Solutions (MSI) has an RSI of 27.3 as of November 26, 2025, firmly in oversold territory. This technical signal aligns with a "Moderate Buy" consensus from analysts, who project a 35.78% upside to $502.50. The company's recent performance underscores resilience: its public safety and enterprise segments continue to benefit from infrastructure spending and AI-driven communication tools. Analysts at Barclays and Piper Sandler have highlighted Motorola's robust cash flow and pricing power in mission-critical communications.

While the RSI suggests a potential rebound, investors should monitor earnings guidance and macroeconomic risks to sector demand.

Zscaler: Oversold Amid Earnings Strength and Strategic Upgrades

Zscaler (ZS) presents a paradox: a 25% monthly price drop despite reporting earnings of 96 cents per share, exceeding estimates. Its RSI of 28.765 signals oversold conditions, supported by Wedbush analyst Daniel Ives' recent upgrade to a $350 price target with an "Outperform" rating according to Sahm Capital. The company's Zero Trust and AI Security platforms are gaining traction, with CEO Jay Chaudhry emphasizing "defensible growth" in cybersecurity demand as reported by Benzinga. However, the "Strong Sell" technical outlook reflects volatility in the cybersecurity sector. For Zscaler, a rebound may hinge on execution against its product roadmap and macroeconomic stability in enterprise IT budgets.

Nutanix: A High-Risk, High-Reward Play on Operational Resilience

Nutanix (NTNX) has faced a 32% stock decline, with its RSI implied to be in oversold territory despite mixed analyst ratings. Morgan Stanley's "Buy" rating with a $82 price target contrasts with Northland Capital's "Market Perform" downgrade. The company's 18% YoY growth in Annual Recurring Revenue (ARR) and maintained operating margin guidance as reported by Yahoo Finance suggest operational resilience. However, Q2 and FY 2026 revenue guidance below expectations has dented investor confidence. At $76.2, the average analyst price target implies a 61% upside according to Stock Analysis, but execution risks remain high. Nutanix's potential rebound depends on its ability to regain market share in hybrid cloud infrastructure.

Contrasting AI Megacaps: Overbought and Long-Term Positioned

While the three undervalued stocks offer short-term reversal potential, AI megacaps like Alphabet, Nvidia, and TSMC are overbought or neutrally positioned. Alphabet's 14-day RSI of 68.73 and weekly RSI above 80 indicate overbought conditions, typical of a stock nearing a correction. Nvidia (RSI: 53.98) and TSMC (RSI: 50.42) remain in neutral territory, reflecting sustained demand for AI chips and manufacturing. These stocks are better suited for long-term investors, given their structural growth in AI and semiconductors.

Strategic Sector Rotation: Balancing Short-Term and Long-Term Bets

The December window offers a unique opportunity to balance momentum-driven trades with long-term positioning. Undervalued tech stocks like Motorola, Zscaler, and Nutanix could benefit from seasonal buying and RSI-driven rebounds, particularly if macroeconomic fears ease. Conversely, AI megacaps, though overbought, remain cornerstones of the tech sector's future. A diversified approach-allocating capital to both short-term reversals and long-term AI infrastructure-could hedge against sector-specific volatility.

Conclusion

The interplay of technical indicators and fundamentals paints a nuanced picture for tech investors. Motorola Solutions, Zscaler, and Nutanix, with their oversold RSI levels and improving operational metrics, warrant consideration for December buying. However, their success hinges on execution and macroeconomic clarity. Meanwhile, AI megacaps, though overbought, retain their long-term allure. As always, discipline in risk management and continuous monitoring of earnings and guidance will be critical.