Semis look ‘bubbly’ and ‘overbought’ – BofA’s Hartnett

BofA Global Research strategist Michael Hartnett warns the Philadelphia Semiconductor Index (SOX) is “extremely overbought,” trading at levels not seen since June 2000 when measured against its 200‑day moving average. The call signals elevated bubble-like risk for the chip sector, raising the odds of a sector pullback or increased volatility that could weigh on large-cap semiconductor names (including NVDA). Short-term market positioning may be stretched, suggesting investors could rotate out of semis or take profits if macro or earnings catalysts disappoint.