After these spectacular surges in recent months, the end of the week is proving more painful not only for French stocks in the sector, but also for other European market darlings, such as Germany's Infineon, which is shedding 5% this Friday, trimming its year-to-date gain to 70%.

Until now, the artificial intelligence winners within the semiconductor manufacturing and equipment space had been immune to rising inflationary fears, fueled by soaring energy prices following the conflict in the Middle East and the blockade of the Strait of Hormuz.

However, as the week draws to a close and US Treasury yields reach a critical zone (with the 10-year rate at 4.54%, for instance), investors are cautiously locking in gains and reducing risk exposure. In this environment, it is logical that high-leverage winners are at the forefront of the sell-off.

Has the sector's rally been too rapid?

This wave of profit-taking appears all the more justified as some question the speed of the advance recorded over recent weeks, which is seen by some as a source of vulnerability.

'Semiconductor stocks have been among the top performers in recent weeks, with the VanEck Semiconductor ETF up more than 50% since late March', notes Michael J. Kramer, founder of Mott Capital Management.

'This type of price action has reinforced the idea that investors are still willing to pay up for the parts of the market most closely tied to AI development and broader tech leadership', the market professional continues.

'But the speed of the rally is now becoming part of the story. When an ETF advances so sharply in such a short period, the question is no longer about strong momentum, but whether the move has become overextended and vulnerable to a pause', he warns.