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Analyst: Semiconductors doing well, but ...

Semiconductors may be in the midst of a rally, but the sector's outlook remains tepid, AllianceBernstein's Stacy Rasgon said Wednesday.

"I think the question of stabilization is still up for debate," the analyst told CNBC's "Squawk on the Street." "If you listen to the industrial income customers, they don't all sound that great. So far, it's not showing up broadly in semiconductors, but that's going to be the question as we're moving out of this year and into next year."

The Market Vector Semiconductor ETF (SMH) has gained more than 7 percent since Nov. 13, with Intel climbing more than 9 percent in the same time period.

"I think the reason the stocks are up [is] we just got through earnings," Rasgon said. "I would say — by and large — things were not that great, but were not as bad as low expectations."

"At this point, that was probably enough."