Technology stocks continue to rip higher and are now on track to their best year in a decade, per WSJ. The sector has gained about 41% this year, making it the best performing sector, significantly ahead of the S&P 500’s gain of about 25%.In fact, technology has driven the S&P 500’s gains too since the sector accounts for 23% of the index. Some areas within technology have done much better. The semiconductor index is up almost 50%.Top performing chip stocks include AMD (AMD)--up 110%, Lam Research (LRCX--up 95% and Applied Materials (AMAT)--up 75%, this year.Trade optimism is the main reason behind these gains as chip stocks have a lot of exposure to China. They derive large portion of their revenue from China since it is the world’s biggest chip market and also have supply chains in the country.Many newer growth areas have emerged for chipmakers, including autonomous cars, cloud computing, virtual reality, gaming, wearables and the Internet of Things (IoT). Growing adoption of 5G would also boost the demand for chips.At the same time, chipmakers may remain volatile till the US and China finalize a comprehensive trade deal. Also, the Chinese government has been trying to promote the domestic chip industry and reduce reliance on foreign firms.To learn more about the iShares PHLX Semiconductor ETF (SOXX), VanEck Vectors Semiconductor ETF (SMH), SPDR S&P Semiconductor ETF (XSD) and Invesco Dynamic Semiconductors Portfolio (PSI), please watch the short video above.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report iShares PHLX Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Semiconductor ETF (XSD): ETF Research Reports VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports Invesco Dynamic Semiconductors ETF (PSI): ETF Research Reports NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report