Related: Cost-Effective ETF Technology Sector Exposure

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.

“Echoing this heavy put-skew is SMH’s Schaeffer’s put/call open interest ratio (SOIR) of 4.27. Not only does this show that puts more than quadruple calls among options set to expire in three months or less, but it ranks higher than 70% of all comparable readings taken in the past year. In other words, short-term speculators are more put-heavy than usual toward the fund,” notes Schaeffer’s.

There are some risks to consider with semiconductor stocks and ETFs. For example, President Donald Trump has pushed for restrictions on trade barriers with China, which might pose a threat to the sector. China is a key market for the global semiconductor industry, consuming more than $100 billion worth of semiconductors or roughly one-third of the world population.

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