JP Morgan strategists led by Nikolaos Panigirtzoglou warn rising volatility in
semiconductor shares, even as the sector hits record highs, could trigger
portfolio VaR breaches that force investors to cut positions. Panigirtzoglou
said an influx of VaR-sensitive investors heightens susceptibility to
self-reinforcing, volatility-driven selling. The Philadelphia Semiconductor
Index (SOX) fell more than 10% earlier this month on concerns of AI-driven
overheating but has since recovered to record highs. A BofA survey this week
found long chipmakers the most crowded trade among fund managers.
