JPMorgan Chase & Co. strategists flagged a growing risk of market “tantrums” as semiconductor stocks surge to record highs. Nikolaos Panigirtzoglou warned that the spike in chip prices has been matched by sharp volatility, potentially pushing portfolios past Value‑at‑Risk limits and forcing forced sell‑offs, even for traders who still back the underlying bets. In the sector today, investors.

The Philadelphia Semiconductor Index fell over 10% earlier this month amid fears that the AI boom was overheating, before rebounding to a fresh all‑time peak. A Bank of America survey flagged long positions in chipmakers as the most crowded trade among fund managers. JPMorgan notes that volatility often climbs before a Value‑at‑Risk shock, a pattern seen in June’s sell‑off today.

JPMorgan’s analysis highlights that the share of semiconductor stocks in global indexes has outpaced their revenue share, with a ratio now six times higher than that of the S&P 500’s Magnificent Seven. Higher valuations and thinner liquidity could trigger a rapid downturn, forcing investors to cut positions. The urges caution, warning that a sudden market correction could ripple across portfolios.