Woofun AI data shows that the Philadelphia Semiconductor Index rose 88% during the second quarter, establishing the strongest single-quarter performance in its history. JPMorgan cautions that this trajectory is unsustainable unless cloud vendor capital expenditure growth decelerates or profits are realized.

Momentum factor holdings declined 17% from their June peak, following a period where hardware semiconductor long positions outperformed shorts by nearly 40 percentage points. Continuous net sell-offs in July drove the overall U.S. stock position percentile down from the 60th to the 40th percentile within one month.