Last year's bear market whacked tech stocks. But a new Nasdaq 'power trend' has propelled semiconductor stocks and other tech plays into new buy zones and beyond. Cirrus Logic, ON Semiconductor Microchip Technology and Axcelis Technologies have all soared, earning them spots on the IBD Breakout Stocks Index.
But they're by no means alone on this elite stock screen, which gets updated weekly. Fellow chip stocks Broadcom and Amkor Technology also made the cut to offer investors potential buying opportunities.
Not surprisingly, MCHP, CRUS and ON stocks also made a recent IBD list of semiconductor stocks showing bullish action.
Beyond the chip sector, the change in market tone this year welcomes a whole host of tech names, retailers, defense contractors and travel plays onto the IBD Breakout Stocks Index.
The Innovator IBD Breakout Opportunities ETF tracks index components. So with a single trade, investors can tap into this new power trend by picking up shares in the BOUT ETF.
In addition to AVGO, CRUS, ON and others, current BOUT ETF members include Crocs, Chipotle Mexican Grill, Cadence Design Systems, TransDigm and dozens more.
The BOUT ETF struggled along with tech and growth stocks last year. But boosted by the wide-ranging market rebound, the fund has found support at its 10-week moving average. That benchmark line is now on the verge of retaking the 40-week moving average, in a sign of rebounding technical strength.
See All Companies On The IBD Breakout Stocks Index
BOUT And Semiconductor Stocks Testing Buy Zones
The IBD Breakout Stocks Index features many names riding the Nasdaq power trend to new heights. Steel stock ATI, defense contractor TransDigm, and cloud-based software leader Box join several other names across a broad range of sectors that have flashed recent breakouts.
Fast-food leaders Wingstop and Chipotle have both earned a seat at the breakout table as well. As CMG stock spices up a new buy zone, Wingstop taste-tests a new 170.97 buy point. Chipotle just reported, missing estimates for earnings, revenue and same-store sales.
Semiconductor stock and IBD Long-Term Leader Cadence Design continues to fabricate a new buy point. A breakout would lift the designer of electronic systems to a new all-time high.
And that's just a small selection of BOUT stocks exploring new buy points and buy zones. Other names include travel and airline stocks Delta Air Lines, Alaska Air and Marriott International.
Finally, looking to follow CROX stock's impressive move, Switzerland-based running shoe maker On has lifted toward the 25.10 buy point of a well-formed cup base.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
