For investors seeking momentum, Communication Services Select Sector SPDR ETF (XLC Quick QuoteXLC - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 48.1% from its 52-week low price of $54.71/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

XLC in Focus

The underlying Communication Services Select Sector Index seeks to provide an effective representation of the communication services sector of the S&P 500 Index. It charges 9 bps in annual fees (see: all the Communication Services ETFs here).

Why the Move?

Tech stocks soared yesterday on AI euphoria. Chipmaker Nvidia's annual developer conference kicked off on Monday. Nvidia launched next-generation Blackwell AI chip at GTC 2024. Alphabet jumped 4.6% after a Bloomberg report that Apple is in talks to build Google's Gemini AI engine into its next iPhone.

More Gains Ahead?

Currently, XLC has a Zacks ETF Rank #1 (Strong Buy). The ETF has a positive weighted alpha of 42.46. This shows that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.