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J.P. Morgan strategist stated that the significant volatility in semiconductor stocks has forced some investors to reduce their positions, increasing the risk of a sharp market shake-up. The team led by Nikolaos Panigirtzoglou indicated that this week, while chip stocks rebounded to historical highs, volatility has also increased, potentially triggering what is known as a Value at Risk (VaR) shock to investment portfolios. In this scenario, severe market fluctuations could cause investors to exceed their risk value limits, forcing them to reduce their positions even if they remain bullish on the trades. Panigirtzoglou wrote, "The emergence of VaR-sensitive investors has intensified the market's sensitivity to self-reinforcing, volatility-induced selling." The Philadelphia Semiconductor Index dropped over 10% earlier this month due to market concerns about overheated artificial intelligence trading, but has since regained its historical high. A survey by Bank of America this week showed that going long on chip manufacturers' stocks has become one of the most crowded trades among fund managers.