'This Is Madness': Investors Chasing Chip Stocks At Risky Extremes

Josh Brown of Ritholtz warns that semiconductor stocks have become overextended after a sharp run, driven by extreme momentum and high RSI readings well above the overbought 70 level. He cautioned that even in an uptrend such conditions can produce large, normal pullbacks and said professionals are reluctant to buy at current extremes. Brown singled out NVIDIA as relatively less overbought — consolidating before a breakout — and said it could retest the 207–208 area before moving higher. The piece highlights sector-wide risk: many chip names (ON, STM, INTC, AMD, MRVL, TXN) show elevated technical readings, and volatility in semiconductors could spill into major tech names (AMZN, GOOGL, AAPL), leaving the broader market vulnerable to short-term shocks.