Last night, U.S. chip stocks surged again! A well-known investor issued a warning!

Chip stocks keep surging.

On May 11th (Monday), all three major U.S. stock indexes closed higher, with the S&P 500 and the Nasdaq hitting fresh highs. At the close, the Dow rose 0.19%, the S&P 500 rose 0.19%, and the Nasdaq rose 0.1%.

Large tech stocks had mixed performances. Tesla rose nearly 4%, Intel rose more than 3% to a record high, Nvidia rose nearly 2% to a record high, while Apple and Microsoft edged down. Amazon, TSMC, and Meta fell more than 1%, and Google A fell more than 3%.

Storage chip stocks continued to rise. The Philadelphia Semiconductor Index jumped 2.59%, setting a new historical high. Qualcomm surged more than 8%, Western Digital rose more than 7%, and Seagate Technology and Micron Technology both rose more than 6%, with all of them posting new record closing highs.

Nvidia closed up 1.97%. During the AI boom, Nvidia has built a full ecosystem from chips to AI models by making large investments in upstream and downstream companies. Data shows that Nvidia’s equity investments this year have surpassed $40 billion. Industry insiders said this investment model not only helps Nvidia lock in downstream customers, but also, to a certain extent, ensures a stable supply of the company’s hardware demand.

Industry sources revealed that Nvidia has finalized Vera Rubin’s mass production plan with ODM partners. It plans to enter the trial production phase in June and start shipping to major North American cloud service providers from July. The initial customer roster includes Microsoft, Google, Amazon, Meta, and Oracle.

Nvidia will release its first-quarter FY2026 earnings report next week. Analysts generally expect that strong demand for GPUs based on the Blackwell architecture will drive results above expectations. Wedbush expects the wave of AI infrastructure spending to continue and said tech stocks are likely to remain strong in 2026.

Intel closed up 3.62%. Following Apple, Intel’s foundry business also achieved another major breakthrough. According to market news, Intel has successfully secured its second large chip customer, which helped its share price continue its upward trend on Monday.

Sources said this customer is highly likely to be AI chip giant Nvidia. Cooperation rumors between the two companies have been ongoing for months, and there has been more substantive progress recently. Last week, Intel CEO Chen Zhiyuan publicly previewed that it is developing “exciting new products” together with Nvidia, which the market interpreted as a clear signal that the two companies have reached deep collaboration.

Well-known investor Michael Burry warned that after a round of “parabolic” rally and tech stock valuations reaching unsustainable levels, the Nasdaq 100 faces a sharp reversal. In a post on Substack, Burry said the current market situation resembles the peak before the internet bubble burst. He specifically pointed out the recent surge in chip stocks, noting that since late March, the Philadelphia Semiconductor Index has risen nearly 70%.

He said that, based on his calculations, the Nasdaq 100’s current P/E ratio is about 43 times, far above the “reasonable level” of around 30, because “Wall Street has overestimated the earnings of the fastest-growing, highest-valuation companies by 50%.” Burry said, “We are witnessing history. In the stock market, this is usually not a good thing.” He compared the current situation to “the last few minutes before a bloody car crash.” However, Burry advises against shorting stocks because put option costs are high and losses are easy to suffer if the timing is wrong.

Most popular Chinese concept stocks rose. The Nasdaq China Golden Dragon Index rose 1.03%. Huya gained nearly 6%, 36Kr rose more than 5%, Li Auto rose more than 4%, NIO, XPeng, and Baidu rose more than 3%, and Xunlei and JD.com rose more than 1%. Alibaba fell nearly 2%, while iQiyi and New Oriental declined more than 2%.

(Source: Securities Times)