The tech stock free fall doesn’t make any sense, BofA says in rebuke to investors while doubling down on the sector’s longevity

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As semiconductor stocks undergo another bout of severe volatility, Bank of America Global Research has issued a sharp rebuke to prevailing market sentiment, labeling fears driving the current tech-sector selloff as logically impossible. In a note released Tuesday, analysts argued that investors are currently pricing in what Fortune’s Jim Edwards called a “free fall” based on beliefs that BofA considers “internally inconsistent.”

BofA senior analyst Vivek Arya’s team put together the note that recalled the famous John Maynard Keynes quote that markets can remain irrational longer than investors can remain solvent, “yet we believe recent software-led moves weighing on leading AI chip stocks appear internally inconsistent.”