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One of the best-performing tech stocks this year could rally another 50%

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One semis stock is about to rocket 50% higher, charts suggest

The last time the tech sector had a first half this strong, Bill Clinton was still president.

The XLK technology ETF has rallied 26% since the beginning of the year, its best January-to-June stretch since 1998. The likes of Microsoft, Advanced Micro, PayPal, MasterCard and Apple have been among those super-charging the gains.

One of those stocks is just getting started, according to Craig Johnson, chief market technician at Piper Jaffray.

"If there is going to be any sort of trade deal, take a look at the chart of AMD," Johnson said on CNBC's "Trading Nation " on Friday. "This is a stock that has been in a pretty well-defined uptrend. A close above $33.50 on that stock would be a nice topside breakout and see an objective that would take the stock up into the mid-$40s."

A move to at least $45 marks nearly 50% upside for AMD. It has already surged 65% this year.

Not all of the best-performing tech stocks will continue to rally, though, warns Johnson.

"On the weaker side, I'd point out the stock of PayPal. This particular stock has been in a very well-defined uptrend, but the most recent advance hasn't been as strong in the move to the upper end of the channel," said Johnson. "That one is a pan, and I would be looking to take some profits in PayPal."

Steve Chiavarone, portfolio manager at Federated Investors, says he's staying long the growth tech trade even after this strong six-month run.

"With the market at highs here, we at Federated have taken a couple chips off the table in terms of our equity overweight, but we've done it on the value side and internationally and specifically chosen not to reduce growth," said Chiavarone.

The IVW S&P 500 growth ETF, which holds tech stocks including AMD, Microsoft and Cisco, has added 19% so far this year. Its value equivalent, the IVE S&P 500 value ETF, has increased 15%.

"These companies are sitting really at the vanguard of what we've talked about a lot, which is a digital revolution," said Chiavarone. "From AMD to PayPal to Microsoft to Apple to MasterCard, what you see is that they're all tied to this in some way, whether it be on mobile payments or big data or AI. We think that's a durable theme that could continue for a while, and we like the sector."

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