In a market characterized by persistent volatility, investors are increasingly focused on identifying stocks with strong upward momentum. A recently published table highlights a select group of Russell 1000 stocks that have reached 2-month absolute and relative highs—a key signal of technical strength. These companies span across sectors such as semiconductors, software, industrials, and consumer discretionary, with particular strength in the tech and chip segments.

Semiconductors Power Ahead – What’s Fueling the Rally?

The most striking trend is the dominance of semiconductor stocks. Names like AMD, ON, LRCX, MU, KLAC, ALGM, MRVL, JBL, and AVGO stand out with Trend Scores of 9–10 and Relative Trend Scores of 9–10, indicating significant bullish momentum both in absolute terms and compared to the broader market.

This surge is driven by several tailwinds: rising demand from AI infrastructure, autonomous vehicles, and defense industries. Additionally, many chipmakers have issued more optimistic forward guidance after a challenging 2023, while expectations of interest rate cuts in the near future continue to support capital-intensive sectors like semis.

Software and Cloud Services: The Next Growth Frontier?

Another high-performing group is the software and programming sector. Companies such as PLTR, RBLX, AKAM, HOOD, and TYL are all posting a perfect Trend Score of 10, reflecting robust buying interest and breakout price action.

Palantir (PLTR) is benefiting from expanded government and defense contracts, while Roblox (RBLX) continues to thrive among Gen Z audiences with a unique monetization model. Robinhood (HOOD) is regaining investor interest through broader product offerings and expansion into new markets.

Not Just Tech: Traditional Industrials and Consumer Names Join the Rally

Beyond tech, traditional industrial names are also gaining traction. Companies like Johnson Controls (JCI), Eaton (ETN), and BWX Technologies (BWXT), which operate in industrial controls, energy efficiency, and capital goods, have seen Trend Scores above 8 with solid relative strength. These names are potentially benefiting from infrastructure spending, energy transition, and government incentives.

Consumer-facing companies are also showing strong momentum. Darden Restaurants (DRI), Avis Budget (CAR), and Wayfair (W) each boast a Trend Score of 10, supported by improving demand in discretionary spending. Their strength suggests that U.S. consumer resilience remains intact, even amid ongoing inflationary pressures.

Decoding the Trend and Relative Trend Scores

The Trend Score ranges from 0 to 10 and reflects a stock’s technical strength based on price and volume analysis. The Relative Trend Score compares the stock’s momentum to other stocks in the index, offering a snapshot of relative outperformance.

For instance, Jabil (JBL) posted a 10 in both Trend and Relative Trend Scores, with no change over the last 5 days—an indication of stable, sustained momentum. In contrast, stocks like IRDM and TYL show minor declines in 5-day momentum scores, possibly signaling a short-term cooldown.

A Breakout Trend or a Temporary Spike?

The key question is whether this represents a sustainable trend or a short-lived rally. The standout sectors—semiconductors, software, industrials, and discretionary—are all benefiting from a mix of macroeconomic support and sector-specific catalysts. This suggests that at least some of these outperformers could continue to deliver alpha through the second half of 2025.

That said, these signals are technical in nature and should be accompanied by fundamental research, including earnings reviews, management outlook, and broader market risks.

Conclusion: Where Smart Money Is Headed

The data suggests a clear pattern: investors are rotating toward stocks with strong technical momentum, particularly in tech and industrial sectors. Tickers such as AMD, PLTR, LRCX, RBLX, JCI, and DRI are leading the charge, with high scores across the board and strong price action.

For investors seeking relative strength and breakout momentum, these stocks deserve a place on the watchlist. They represent companies at the intersection of fundamental opportunity and technical confirmation—a combination the market rarely ignores for long.