Investors seeking momentum may have iShares U.S. Technology ETF (IYW Quick QuoteIYW - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IYW are up approximately 49.6% from their 52-week low of $100.84/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

IYW In Focus

The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index. The fund charges 40 bps in fees.

Why The Move?

The fund is heavily weighted in artificial intelligence (AI) majors like Apple, Microsoft, and Nvidia. While Apple initially lagged behind its peers in the AI race, the company recently announced its own generative AI efforts, which helped its stock soar in recent sessions. About 45% of the fund's weight is invested in the world's three most valuable companies. Given this data and the ongoing AI boom, the fund had every reason to hit a 52-week high yesterday.

More Gains Ahead?

The fund has a Zacks Rank #1 (Strong Buy). It also has a positive weighted alpha of 44.25. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.