Analyst: The Top Tech Stock Isn't Apple, Alphabet Or Amazon - It's Skyworks Solutions
According to Ari Wald, Oppenheimer's head of technical analysis, the semiconductor maker is already a red-hot stock having gained more than 30 percent since the start of 2017. But the bullish story to Skyworks' stock certainly doesn't end here, as investors can expect further gains moving forward.
Wald explained during a recent CNBC "Trading Nation" segment investors should have exposure to semiconductor stocks from a technical perspective. He noted a key sign in the Technology SPDR (ETF) (NYSE: XLK), which bodes well for Skyworks. Specifically, the chart of the XLK relative to the S&P 500 index shows a recent breakout above a consolidation period that has been in place going back to 2012.
There is another bullish sign found in another chart. In this case, a breakout was observed when measuring the Philadelphia Stock Exchange Semiconductor Sector Index relative to the technology sector.
With that said, Skyworks is a top pick in the semiconductor space and momentum is certainly on the stock's side as it's trading at its highest levels since mid-2015.
"Bit of a rotation idea here. [There was a] prior period of underperformance, beginning to shift higher, reverse higher, and I think this is playing the rotation game here within this leading group," Wald concluded.
Here are the charts the analyst cited in the CNBC segment:
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