By Doug Busch

As tech remains the second-best performing S&P 500 sector in 2025, with the Technology Select Sector SPDR ETF trailing only the unexpected strength in utilities, one notable pocket of leadership is emerging in semiconductors.

Over the past month, the VanEck Semiconductor ETF has surged 13%, sharply outperforming the iShares Expanded Tech-Software Sector ETF, which is up just 1% in the same period. This marks a clear divergence after both groups traded in lockstep through July and August. The recent breakout in relative strength suggests that semiconductors could continue to lead, even as both groups can still perform well on an absolute basis. With that in mind, here are three semiconductor stocks that haven't fully kept pace with the group's surge but are technically positioned to catch a bid into the year-end.

The VanEck Semiconductor ETF trade at $343.30 Thursday.

Skyworks Solutions, a semiconductor focused on analog and mixed-signal components, is down 16% year to date and 26% off its 52-week highs, significantly lagging the VanEck Semiconductor ETF. With that decline, the stock offers a 3.8% dividend yield and witnessed insider buying from the CEO earlier this year, signaling potential confidence in a turnaround. Technically, the chart shows a possible long-term double bottom formation, with a bearish shooting star at the $200 level in April 2021 marking the top and a doji candle in this April beginning to shape the right side. Currently trading just below its 200-month simple moving average, a buy stop above $76 could trigger a move toward $125 by mid-2026, with the bullish outlook remaining intact above $68.

Skyworks Solutions was trading at $74.30 Thursday.

Qualcomm, a legacy semiconductor name, is up a modest 7% year to date and offers a 2.1% dividend yield, but the longer-term technical setup suggests more upside may be in store. On the three-year weekly chart, the stock is nearing support within a bullish ascending triangle that has been forming since mid 2024. The key $175 level has acted as a major battleground, initially breaking out from a bull flag in May 2024 before quickly reversing after a bearish dark cloud cover and shooting star candle. That level continued to serve as resistance through late 2024 and early 2025, but a bullish piercing line candle in April helped kick off the right side of the triangle. Enter here and add to above $175 breakout trigger which could see a measured move toward $230 by mid-2026, retesting the highs from June 2024. The technical picture remains constructive above $153.

Qualcomm was trading at $164.46 Thursday.

Astera Labs, a semiconductor with strong AI exposure, remains up 23% year to date despite a steep pullback of over 30% in the past month. Since its initial public offering in 2024, the stock has endured two sharp drawdowns, one of 62% from March to August 2024 and another of 68% this January to April. It's currently trading 37% below its 52-week high, with consecutive heavy weekly losses of 19% in late September and a 20% drop so far this week. I highlighted the stock back in early August as it broke out from a long cup base and hit my $250 target, and this recent decline may offer a second chance for those who missed the 29% earnings gap-up on Aug. 6. With a potential double bottom pattern forming above $232.10, this could present a compelling risk/reward setup. Consider entering here, and look to add on strength above the double bottom pivot. The bullish thesis remains intact above $150.

Astera Labs was trading at $162.61 Thursday.

Write to Doug Busch at douglas.busch@barrons.com

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October 16, 2025 12:02 ET (16:02 GMT)

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