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A corner of tech is up 50% from its 2022 lows — and strategists recommend these stocks to play it

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Forget Big Tech. This sub-sector has flown under the radar this year, but has outperformed the Nasdaq, S&P 500 and Dow Jones Industrial Average.

The semiconductor sector has seen quite a turnaround of late. Chip stocks were among the worst performers last year, with the iShares Semiconductor ETF shedding more than 35% of its value. But the sector has been quietly regaining those losses, with the index up nearly 50% from its October lows, outperforming the major U.S. indexes.

" Sylvia Jablonski, CEO at Defiance ETFs, named Nvidia, Advanced Micro Devices and NXP Semiconductors as "leaders in data centers" and said the companies are going to "power the engines" of AI. Asia opportunities UBS, meanwhile, sees pockets of opportunities emerging in Asia's semiconductor industry.

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