Direxion Daily Semiconductors Bull 3x Shares (SOXL), a leveraged ETF tracking the semiconductor sector, surged 8.38% in intraday trading on Wednesday. This significant uptick comes as investors eagerly await Taiwan Semiconductor Manufacturing Co.'s (TSM) third-quarter earnings report, scheduled for release before Thursday's market open.

The anticipation surrounding TSM's earnings is driving optimism across the semiconductor sector. Analysts project TSM to report robust third-quarter revenue of $31.50 billion, a substantial increase from $23.50 billion in the same quarter last year. The company's recent performance, including a 31.4% year-over-year growth in September revenue, has bolstered investor confidence. This growth is largely attributed to increasing demand for advanced semiconductor nodes in artificial intelligence (AI) and high-performance computing applications.

The semiconductor industry's crucial role in the expanding AI sector continues to be a key growth driver, contributing to SOXL's dramatic movement. As a major supplier to tech giants like Apple and NVIDIA, TSM's performance is seen as a bellwether for the entire chip sector. However, investors should remain cautious of potential headwinds, including ongoing geopolitical tensions and trade disputes between the United States and China, which could impact this highly volatile leveraged ETF.