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News in English (USA) / 11.05.2026 / 18:00

Chip Stocks Continue to Surge Amidst Concerns of Overvaluation and Economic Impact

The stock market is currently witnessing a significant rally in semiconductor stocks, with a reported surge of over 60% in just six weeks. Retail investors are heavily pouring into this sector, drawn by the hype surrounding AI and chip demand, raising comparisons to the dot-com bubble. Despite these gains, experts warn of a potential pullback as liquidity tightens and the gap between chip and software stocks widens. Companies like Qualcomm have seen their shares rise nearly 10%. Analysts are debating the sustainability of this rally, with some suggesting that the market might be pricing in future expectations as far ahead as 2028. As retail traders flock to chipmaker stocks, the situation continues to evolve, sparking concerns about whether this booming sector is approaching a dangerous level.
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