Related: Critical Point for High-Flying Sector ETFs

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.

“Taiwan Semiconductor Manufacturing Co., which is SMH’s biggest holding, tumbled last week after it forecast revenue below analysts’ estimates. The company said it’s facing a smartphone market with little growth, among other issues,” according to Bloomberg.

Intel Corp. (NASDAQ: INTC), another major SMH, reports earnings this week.

For more information on the tech segment, visit our technology category.

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