Retail investors' bets on Mag 7 and semiconductors are really going wild. They have achieved record-breaking excess returns for two consecutive months, and options funds are almost rushing toward five times the historical average. It feels even more intense than the meme stock craze of 2020.

Retail investor preferred portfolios in May led the top mutual fund portfolios by 16 percentage points, the largest single-month gap since 2018, focusing on the Magnificent 7 and large tech stocks such as semiconductors. Retail investors achieved an excess return of 14 percentage points in April, hitting a new all-time high for two consecutive months, surpassing the record set during the meme stock craze in late 2020. Semiconductor options funding reached 4.9 times the historical monthly average, a peak, about 25% higher than before March.