Semiconductor stocks are hitting a 'key decision point'

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.

Read More'Merger mania' for semiconductors to return: Analyst

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.

Read More Derivative trade: Buy Intel on jobs report?

"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."

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Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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