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The last time the U.S. semiconductor sector surged 50% in 25 days, the dot-com bubble burst. Will history repeat itself this time?
The semiconductor sector of the U.S. stock market has surged recently, with the 25-day rolling gain of the Philadelphia Semiconductor Index surpassing 50%, reaching its highest level since the peak of the dot-com bubble in 2000. Although robust demand for AI supports the fundamentals, the extreme overheating of the market has raised concerns. The 'Big Short' investor Burry has increased his bearish options positions, and the market fears a repeat of a historic bubble burst. Last time, after the Nasdaq Composite reached its closing high during the dot-com bubble era, it lost approximately 80% of its value within three years.
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