Still, investors could be paying up for future catalysts for semiconductor and broader technology names. If there is a silver lining for the rising valuations on chip stocks it is that some industry observers believe the group’s valuations should not be measured in the traditional sense because of the evolution of the semiconductor business.

“Johnson said he would be cautious here, as the fundamental elements indeed appear positive, ‘but right now, I’d rather trim some off the table here and be selectively investing in some of the chip names than just all in on these names at this point in time,” according to CNBC.

Several of the S&P 500 stocks that have gained at least 20% this year are semiconductor stocks, including some names that reside in SMH and SOXX.

Traders looking to make bearish bets on chip ETFs can consider the ProShares UltraShort Semiconductors (NYSEArca: SSG), which takes the -2x or -200% daily performance of the Dow Jones U.S. Semiconductors Index and the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS), which provides a -3x or -300% performance of the PHLX Semiconductor Select Index.

For more news and strategy on the Technology market, visit our Technology category.