Direxion Daily Semiconductors Bull 3x Shares (SOXL) skyrocketed 16.74% in pre-market trading on Thursday, extending a powerful technical rebound after the leveraged ETF had suffered a cumulative decline of over 40%, plunging from around $150 to approximately $87.

The sharp recovery was fueled by a wave of positive catalysts that lifted the broader semiconductor sector. UMC reported better-than-expected earnings and raised its capital expenditure budget, while Bank of America flagged a mid-to-long-term positioning window for the industry. Additionally, strong results from Lam Research and Microsoft, along with upbeat guidance and target price hikes for Applied Materials, boosted investor confidence that semiconductor fundamentals remain intact despite recent selling pressure.

The prior selloff had been exacerbated by concerns over AI capital expenditure sustainability and a 7.1-magnitude earthquake in Japan that forced factory shutdowns. However, analysts noted the decline appeared to be a disorderly rout rather than a fundamental panic. With short-term capital stepping in at depressed levels and the fund's 3x daily leveraged exposure amplifying the move, the ETF staged a dramatic rebound as dip-buyers returned to the semiconductor space.