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Jan 15, 2021
3 Smaller, Large-Cap Chip Stocks Expected to Move Higher

3 Smaller, Large-Cap Chip Stocks Expected to Move Higher

In the investment world the definition of a large-cap stock is any company that has a market cap over $10 billion. That leaves a lot of room between $10 billion and the $1 trillion market cap we now have for a few stocks. Combing Tickeron’s list of A.I. Trend Predictions from January 14, I couldn’t help but notice three semiconductor companies with smaller, but still large-cap, stocks that received bullish signals with high probabilities of success.

All three stocks get a “strong buy” rating from Tickeron’s scorecard and the signals all had confidence levels of 88%-89%. The three companies are ON Semiconductor (ON), Qorvo (QRVO), and Teradyne (TER). All three have market caps below $25 billion and they score very well on the fundamental and technical screener.

All three stocks get one negative score on their fundamental analysis, but it’s a different indicator in each case. Teradyne gets four positive readings from the fundamentals, Qorvo gets three positives, and ON Semiconductor gets two positive readings. The only area where all three score really well is in the Profit vs. Risk ratings. Teradyne and Qorvo both get great marks in the Price Growth Ratings.

The companies do even better on the technical analysis screener. All three stocks get four bullish signals. Teradyne doesn’t get any bearish signals while Qorvo and ON Semiconductor each get one bearish signal.

One of the more interesting observations was that the four bullish signals were the same for all three stocks. The signals came from the Aroon Indicator, the MACD indicators, the Momentum indicators, and the Moving Average indicators. The bearish signals for Qorvo and ON Semiconductor were both from the Bollinger Bands.

All three of these stocks have rallied tremendously since their March lows. ON Semiconductor is up nearly 350%, Teradyne is up over 200%, and Qorvo is up over 150%. The rallies have put all three stocks in overbought territory based on their 10-week RSIs and their weekly stochastic indicators. But as the saying goes, “overbought can always become more overbought.”

Looking at the sentiment indicators for the three stocks, something else caught my attention. The short interest ratios for both ON Semiconductor and for Teradyne are extremely high. Teradyne’s is 7.41 and ON’s is 8.04. The average short interest ratio is around 3.0. What the high short interest ratios suggest is that there is considerable bearish sentiment building toward the stocks.

From a contrarian perspective, a high short interest ratio is a good sign because it means, if the stock continues to rally, the short sellers can add buying pressure if they have to cover.

The complete comparison of the three stocks from Tickeron appears below. It shows how the stocks compare to one another and how they stack up against other stocks.

 

Related Ticker: SMH

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


Momentum Indicator for SMH turns positive, indicating new upward trend

SMH saw its Momentum Indicator move above the 0 level on September 16, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In 73 of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for SMH just turned positive on September 18, 2026. Looking at past instances where SMH's MACD turned positive, the stock continued to rise in 46 of 50 cases over the following month. The odds of a continued upward trend are 90%.

SMH moved above its 50-day moving average on September 18, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for SMH crossed bullishly above the 50-day moving average on September 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.

Following a +2.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where SMH advanced for three days, in 328 of 358 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.

Bearish Trend Analysis

The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where SMH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.

SMH broke above its upper Bollinger Band on September 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for SMH entered a downward trend on September 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom Inc. (NASDAQ:AVGO), Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), Intel Corp (NASDAQ:INTC), Lam Research Corp (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT), Texas Instruments (NASDAQ:TXN), KLA Corporation (NASDAQ:KLAC).

Industry description

The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Listed Semiconductor 25 Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index includes common stocks and depositary receipts of U.S. exchange-listed companies in the semiconductor industry. Such companies may include medium-capitalization companies and foreign companies that are listed on a U.S. exchange. The fund is non-diversified.

Market Cap

The average market capitalization across the VanEck Semiconductor ETF (SMH) ETF is 613.17B. The market cap for tickers in the group ranges from 29.45B to 5.53T. NVDA holds the highest valuation in this group at 5.53T. The lowest valued company is ON at 29.45B.

High and low price notable news

The average weekly price growth across all stocks in the VanEck Semiconductor ETF (SMH) ETF was 16%. For the same ETF, the average monthly price growth was 35%, and the average quarterly price growth was 164%. SNPS experienced the highest price growth at 22%, while INTC experienced the biggest fall at -3%.

Volume

The average weekly volume growth across all stocks in the VanEck Semiconductor ETF (SMH) ETF was 16%. For the same stocks of the ETF, the average monthly volume growth was -4% and the average quarterly volume growth was -49%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 70
P/E Growth Rating: 37
Price Growth Rating: 33
SMR Rating: 46
Profit Risk Rating: 44
Seasonality Score: 41 (-100 ... +100)
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