Chip stocks surged 60% in six weeks, with retail investors flocking in at high prices, raising concerns about an "AI bubble."

According to BlockBeats, on May 11th, as the AI ​​boom continues to fuel the semiconductor sector, US chip stocks have surged by approximately 60% over the past six weeks. However, several institutions are beginning to warn that the rally is approaching a "parabolic" upward phase. Meanwhile, a large amount of retail investor funds that previously miss the pump have recently flowed back into technology and chip stocks. JPMorgan data shows that U.S. retail investors' buying of technology stocks last week reached its highest level in the past year, with AI-related memory chip and hardware companies being the most sought-after. Driven by capital inflows, the vast majority of SOX constituent stocks are currently still above their 200-day moving averages, with some technical indicators even exceeding those of the 1999 dot-com bubble period. Roundhill Financial CEO Dave Mazza stated that demand for AI infrastructure was indeed validated during earnings season, but the market is paying increasingly higher prices for "perfect expectations." He warned that continued chasing of high prices is pushing the semiconductor market closer to an uncontrollable parabolic trajectory. Chris Verrone, a strategist at Strategas Securities, pointed out that the current rate of increase in the chip sector has reached historical extremes, and the risks could amplify rapidly if the trend reverses. John Kolovos, another institutional investor, stated that the semiconductor index is currently about 57% above its 200-day moving average, a situation historically only seen in 1995 and 2000, both of which were followed by significant corrections. However, some Wall Street firms still believe that short chip stocks directly at this time is extremely risky. Alexander Altmann, head of strategy at Barclays, said that although market sentiment has clearly warmed up, there are no signs of it getting out of control yet, and short SMH now is "almost tantamount to self-destruction."