U.S. Chip Stocks Surge 60% in 6 Weeks as Retail Investors Rush In; Technical Indicators Hit Historic Extremes

According to BlockBeats, U.S. semiconductor stocks surged approximately 60% over the past six weeks as of May 11, driven by continued AI enthusiasm. Retail investor buying activity in technology stocks reached its highest level in a year last week, with AI-related memory chips and hardware companies most sought after, according to JPMorgan Chase data.

Most SOX index components are currently trading above their 200-day moving averages, with some technical indicators exceeding levels last seen during the 1999 dot-com bubble. Strategas Securities noted that the sector’s rate of gain has reached historic extremes, while another analyst pointed out that the semiconductor index is trading approximately 57% above its 200-day average, a level historically matched only in 1995 and 2000 before significant corrections followed.