The stock market is experiencing another powerful rally, with the S&P 500 charging toward fresh record highs as technology stocks take center stage. Momentum-chasing investors are flooding back into equities, fueling what many observers are questioning could be a classic melt-up scenario.

Speculation that the worst of the Iran conflict may be over is driving traders into risk assets, with artificial intelligence darlings leading the charge. Broadcom Inc. and Intel Corp. have emerged as particular favorites, with the broader semiconductor sector climbing in 21 of the last 23 trading sessions—a sustained rally that signals strong market conviction.

The concentration of gains in a handful of mega-cap tech names mirrors patterns from previous melt-ups, raising questions about underlying market breadth. While the Iran de-escalation narrative provides a proximate catalyst, the rally's intensity suggests investors are betting heavily on continued AI-driven earnings growth. This sets up a critical test: if semiconductor demand fails to match expectations, the market could face sharp corrections.