Semiconductor stocks were one of the best-performing industry groups in the S&P 500 on Wednesday, rising more than 3 percent.
And according to one technician, the group is approaching a "key decision point" that could lead both semiconductor stocks and the overall market higher.
"They're actually some pretty nice leadership today," Todd Gordon of TradingAnalysis.com said Wednesday on CNBC's "Power Lunch." "You've got pharma, you've got health care, you've got semis leading the way up."
Gordon said the industry group is bouncing off a support line near $545, which it also hit a year ago.
Now, Gordon is looking for the group to break through the recent downtrend since June of this year.
"I just want to trade towards it, and if we break through it, then we can talk about higher prices," Gordon said Wednesday.
One stock in the industry group in particular is a standout, according to Dennis Davitt of Harvest Volatility Advisor.
Davitt said Intel is one of the best bets within semiconductor stocks, partly because of new opportunity in the mobile business and automated driverless cars, which tech giants such as Google and Apple are currently working to develop.
"It's relatively a conservative stock, but it's also moving into growth areas," Davitt said Wednesday. "With all the automatic driving cars out there, Intel is really big in that space. So anything under the hood that involves a chip, is pretty much owned by Intel."