THE semiconductor sector has become the stock market’s hottest trade, but according to a Bloomberg report, the extraordinary rally in chipmakers is also reigniting a familiar question on Wall Street: Are investors witnessing a genuine technological transformation, or the early stages of another market bubble?

Few sectors have enjoyed a run quite like this, the newswire points out, noting the Philadelphia Semiconductor Index is heading towards what would be its strongest quarter on record after surging nearly 70% in just two months.