Forget Nvidia And Arm, These 3 Chip Stocks Are Flashing Bullish Signals

Author: Rishabh Mishra | September 24, 2025 04:22am

Three semiconductor stocks are capturing attention with powerful momentum gains just as the broader tech sector surges.

3 Chipmakers Zoom In On Momentum Rankings

This week, Silicon Motion Technology Corp. (NASDAQ:SIMO), SkyWater Technology Inc. (NASDAQ:SKYT), and Tower Semiconductor Ltd. (NASDAQ:TSEM) broke into the top 10% momentum percentile, a crucial indicator that ranks stocks based on their relative price strength and volatility compared to industry peers.

This upward shift marks them as standout performers, particularly as prominent chip names like Nvidia Corp. (NASDAQ:NVDA) and Arm Holdings PLC ADR (NASDAQ:ARM) face heightened scrutiny over valuations.

Silicon Motion Technology

• SIMO enters the top decile with a week-on-week momentum percentile increase, moving from a score of 89.93 to 90.15—a gain of 0.22 points. While the raw delta might seem modest, it is especially important given that this metric compares SIMO against the full basket of listed stocks.

• The stock has risen by 67.15% year-to-date and 60.40% over a year.

• It maintains a stronger price trend over the short, medium, and long term, with a relatively moderate quality ranking. Additional performance details are available here.

See Also: Nvidia Supplier ASML Soars In Quality Rankings As BofA Sees It Winning Big From $5 Billion Intel-Nvidia Deal

Skywater Technology

• SKYT's ascent is the most dramatic among the three, leaping from the 78.69th percentile to 91.81 in the latest weekly reading. This 13.12-point surge underscores extremely strong buying interest and a distinct improvement in price action relative to peers.

• Higher by 12.84% YTD, the stock was up 69.45% over the year.

• With a poor growth ranking, this stock maintained a stronger price trend over the short, medium, and long terms. Additional performance details are available here.

Tower Semiconductor

• TSEM's measured advance into the top 10th percentile momentum bracket saw its percentile score rise from 89.81 to 90.15, a week-on-week improvement of 0.34 points. This gain, although less flashy than SKYT's, signals ongoing accumulation and market confidence in Tower's operations.

• The stock advanced 32.94% YTD and 58.67% over the year.

• It had a stronger price trend in the short, medium, and long terms, with a moderate value ranking. Additional performance details are available here.

What Does Momentum Ranking Mean?

Momentum, as defined by the Benzinga Edge Stock Ranking system, quantifies a stock's price trend strength and volatility, evaluating recent performance against the entire equity market on a percentile basis.

Even small percentile moves at the upper echelons signal outsized relative demand and often coincide with sharp inflection points in stock price trajectories.

Price Action

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Tuesday. The SPY was down 0.54% at $663.21, while the QQQ fell 0.66% to $598.20, according to Benzinga Pro data.

On Wednesday, the futures of the Dow Jones, S&P 500, and Nasdaq 100 indices were higher.

Read Next:

• IT Stocks Set For Breakout Amid Surging Momentum

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Chung Hao Lee / Shutterstock

Posted In: ARM NVDA QQQ SIMO SKYT SPY TSEM