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.

“I see ongoing weakness in those semiconductors and technology, which will lead to a bigger summer seasonal pullback here in the S&P 500,” he added. “So watch those semiconductors — we’ve seen weakness since last Friday. If we go out on another low note, it sets us up for an extension of those declines into next week,” Evercore ISI technical analyst Rich Ross told CNBC.

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.