S&P 500 futures are little changed after index briefly tops 5,500: Live updates

Tech stocks may soon be seeing a pullback, according to Saira Malik of Nuveen.

“The technicals and the flows into tech … make them look overbought in the short term,” the firm’s chief investment officer told CNBC’s “Power Lunch” on Thursday. “The relative strength indicators show that tech is overdone at this point, so I wouldn’t be surprised to see a shorter-term pause.”

However, there’s one megacap tech name in particular that could see a lot more upside ahead, especially given the limited supply of artificial intelligence stocks, Malik said.

“Nvidia is definitely becoming the tail that wags the dog,” she said, adding that it’s not an expensive stock compared to the broader semiconductor industry. “It’s just not a stock that you’re paying a lot for.”

Shares of the chipmaker closed down 3.54% on Thursday after hitting a new 52-week high during the session. The stock is up around 164% this year.

— Sean Conlon