Forget buy the dip. Now retail investors are ‘trading the mania’ in chip stocks, and it’s about to get messy.

Goldman Sachs warns that retail investors have shifted from “buy-the-dip” to “trading the mania,” crowding into highly leveraged semiconductor trades — notably via Direxion’s 3x semiconductor ETFs — amplifying volatility in chip names. The PHLX Semiconductor Index has jumped ~35% in April, and Goldman says retail participation in the Direxion Bear 3x (SOXS) and Bull 3x (SOXL) ETFs sits at the 97th and 99th percentiles over five years. That yoking of retail momentum and triple-leverage raises the odds of rapid, “bar‑fight” style squeezes that can move individual chips and sector ETFs sharply, even if broader institutional players (pension funds) are more cautious. Market-watchers warn the setup could produce violent thematic swings under the hood, increasing tail‑risk for investors exposed to semiconductor equities and leveraged products.