Semiconductor stocks have rallied excessively and are vulnerable to correction as investors question whether the torrid trade has run too far, with leveraged products amplifying volatility

"The Philadelphia SE Semiconductor Index ending on Friday down over 20% from its late-June record high, confirming it has been in a bear market. Chip stocks have swung widely as investors questioned whether the torrid trade has run too far...leveraged products tied to the semiconductor space are also amplifying on both the upside and the downside."