AI bubble debate gets real as chip stocks rally

Chipmakers are by far the hottest stocks in the market, but their recent surge is lending urgency to the debate over whether investors are buying into an artificial-intelligence bubble that’s due to burst.

The Philadelphia Stock Exchange Semiconductor Index is on pace for its best quarter ever after soaring 69% in the past two months. Chips are the best performing sector in the S&P 500 Index this year by a wide margin. The gains have gotten so extreme and widespread that the group is now heavily represented among the benchmark’s leading stocks.

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