After wallowing in the red for two months, semiconductor stocks jumped Thursday. The Philadelphia Stock Exchange Semiconductor Index finished up 3.7% to 485, helped by upbeat comments on demand from executives at Applied Materials ( AMAT) and Micron ( MU). But Thursday's session was an anomaly vs. the recent norm. The SOX entered Thursday's session down 16.5% from its Jan. 12 high and on Monday had fallen below its 200-day moving average for the first time since mid-April 2003. So it's an open question whether Thursday represented merely a technical reversal after a pronounced slide, or the beginning of a new uptrend for the sector. Notably, many money managers remain leery, dismissing Thursday's bounce as a short-term move for a sector that's still far from a bargain. "The upside is priced in," summed up Jerome Dodson, manager of the ( PARNX) Parnassus Fund , which doesn't have any holdings in chip stocks. Dodson would like to see chip stocks fall another 15% or so before becoming a buyer. He expects the stocks to fall further in the summer leading up to the back-to-school season, when market sentiment tends to pick up along with seasonal demand. Romeo Dator, who co-manages the ( GBTFX) All-American Equity fund at U.S. Global Investors, argued chip stocks have gone from expensive to "close to fairly valued." But he says they don't yet look like good values. Indeed, chip stocks still trade at a premium to the market. The average forward price-to-earnings ratio for semiconductor companies in the Dow Jones Semiconductor Index stands at 25.6 for 2004 and 19.7 for 2005 vs. 17.5 for 2004 and 15.7 for 2005 for the S&P 500, according to Thomson First Call.