BofA Warns US Tech, Semiconductors Show Bubble-Like Conditions
Bank of America's Bubble Risk Indicator hit record highs for the US Semiconductor sector (0.91), Technology sector (0.82), and Nasdaq 100 (0.75), more than tripling since March. BofA says positioning, sentiment, and valuations approach dot-com bubble extremes.
Bank of America's Bubble Risk Indicator has surged to 0.91 for the US Semiconductor sector and 0.82 for the Technology sector — the highest readings since the indicator was introduced in 2023.
The Nasdaq 100 gauge also climbed to a record 0.75. All three metrics have more than tripled since March, reflecting increasingly stretched market conditions.
BofA notes that investor positioning, sentiment, and valuations are approaching extremes reminiscent of the 2000 Dot-Com Bubble.
Source: First Squawk