Should You Buy These High-Flying Nasdaq Stocks?

Their recent performance is intoxicating. Ditto for their not-so-recent performance. The fear of missing out is building, as these rallies are seemingly unstoppable.

But before anyone else plows into semiconductor names like Inphi (NASDAQ: IPHI), KLA-Tencor (NASDAQ: KLAC), or FormFactor (NASDAQ: FORM) in hopes of more red-hot gains, they might want to instead take a breath, and take a step back. Presumption has exaggerated the upside for these companies, while euphoria has obscured their risk.

The numbers are impressive. FormFactor's stock price is up 44% year to date, thanks to the past month's 24% advance. Applied Materials (NASDAQ: AMAT) shares have jumped 13% in price in just the past week. KLA-Tencor stock has found new life of late, up more than 15% in just the past few weeks. Lattice Semiconductor (NASDAQ: LSCC) stock has doubled in value since the end of 2019. Inphi shares have gained nearly 30% over the course of the past week thanks to its recent buyout offer and are now up more than 100% for the year.

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Source Fool.com