Semiconductor stocks are hot.
The SMH, the ETF that tracks semiconductors, is up more than 26 percent from its Aug. 24 low, while the broader S&P 500 is up 9 percent in the same period. According to one technician, the charts could be signaling even more gains to come.
"The semis are in a great technical position," Rich Ross said Wednesday on CNBC's "Trading Nation." In early September, Ross correctly predicted a breakout in the semiconductor space, and given the recent activity, he's more convinced than ever that the good times will continue. "We've seen a heroic move off the lows," added Ross, Evercore ISI's head of technical analysis and a CNBC contributor. He attributed much of the move to booming M&A activity in the space.