Chip stocks just added $3 trillion in market value — but are the most overextended in decades: Chart of the Day

The semiconductor sector has experienced a powerful, broad rally, with the PHLX Semiconductor Index on a 17-day winning streak and chip stocks adding more than $3 trillion in market value since March 30, 2026. Nvidia (NVDA) and Broadcom have driven much of the gains, with Taiwan Semiconductor and other large-cap names (Micron, AMD, Intel, Texas Instruments, Lam Research, Arm, Applied Materials, Marvell, KLA) contributing significant market-cap increases. Measured against the 200-day moving average, the group is the most overextended since 2000, raising concentration and overheating concerns. While the move need not end immediately, the article flags elevated risks of a pause, pullback, or sideways correction as markets work off extreme momentum.