MU, INTC, AMD, NVDA And Other Chip Stocks Slide — BofA’s Bubble Risk Indicator Shows Rising Risks For Tech, Semiconductor Stocks

The VanEck Semiconductor ETF has gained nearly 76% in the first six months of 2026.

• BofA’s Bubble Risk Indicator flashed a warning sign for U.S. tech and semiconductor stocks.
• According to a Reuters report, the Bubble Risk Indicator is currently at 0.91 for the PHLX Semiconductor Sector and 0.82 for the Technology Select Sector.
• Likewise, the indicator is currently at 0.69 for the Nasdaq 100 index.

Chip stocks fell on the first day of the second half of 2026, with shares of Micron Technology Inc. (MU), Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD), and other semiconductor stocks plummeting between 3% and 9% in Wednesday morning’s trade.

The VanEck Semiconductor ETF (SMH), which rose nearly 76% in the first six months of 2026, was down nearly 5% at the time of writing. The iShares Semiconductor ETF (SOXX), which had gained nearly 108% during this period, was down over 5%.

The tech-heavy Nasdaq 100 was down more than 1% at the time of writing.

BofA’s Bubble Risk Indicator Flashes A Warning

BofA’s Bubble Risk Indicator flashed a warning sign for U.S. tech and semiconductor stocks. According to a Reuters report, the Bubble Risk Indicator is currently at 0.91 for the PHLX Semiconductor Sector and 0.82 for the Technology Select Sector.

Likewise, the indicator is currently at 0.69 for the Nasdaq 100 index.

BofA’s Bubble Risk Indicator scores assets on a scale of 0 to 1, with 0 representing no risk and 1 representing extreme risk and bubble-like price action.

BlackRock Investment Institute Flags Unresolved AI Bubble Question

The BlackRock Investment Institute flagged that the AI bubble question remains unanswered, even though the firm remained bullish on the potential of AI to deliver a permanent growth breakout thanks to accelerating innovation.

“Three questions remain unresolved: is AI becoming a bubble, how costly will it be, and who will capture the value? We stay overweight U.S. equities and focus on bottleneck opportunities to participate in AI growth without picking model winners: power, grids, memory, chips and data centers,” the firm stated in its note.

BII added that physical AI, which includes robots, autonomous systems, and manufacturing, is the next frontier.

“Yet the route to abundance, if we get there, runs through scarcity. A similar tension is playing out across other investment themes — and reshaping portfolios,” BII said.

Kevin Warsh Expects US To Be A Major AI Beneficiary

Federal Reserve Chair Kevin Warsh said he expects the U.S. to be one of the biggest beneficiaries of the AI boom over the medium term, citing the rapid pace of improvements in AI models.

During an interview at the ECB Forum on Central Banking in Sintra, Portugal, Warsh said the U.S. welcomes productivity-driven economic growth and does not view AI as a zero-sum competition. He added that broad-based global economic growth would ultimately benefit the country and make work more productive.

At the same time, Warsh described AI as a fundamental shift for both the economy and monetary policy, saying the Federal Reserve will closely monitor how the technology affects inflation and employment as it pursues its dual mandate of price stability and maximum employment.

The Invesco QQQ Trust (QQQ) is up 19% over the past 12 months, while the iShares U.S. Technology ETF (IYW) is up 24%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<