Direxion Daily Semiconductors Bear 3x Shares (SOXS), a leveraged exchange-traded fund designed to deliver three times the inverse daily performance of semiconductor stocks, surged 5.03% in pre-market trading on Tuesday.

The sharp rise in the bearish ETF came as chip and storage shares fell broadly in pre-market trading. According to market reports, semiconductor-related stocks including the Direxion Daily Semiconductor Bull 3x Shares (SOXL), SanDisk, Wolfspeed, and Microchip Technology were down around 2%, while Seagate Technology and Western Digital declined over 1%.

The sell-off in the semiconductor sector may also reflect growing concerns about future oversupply. A former Samsung chip executive recently predicted that memory prices could drop next year or in early 2028 as Chinese companies aggressively expand production capacity, potentially shifting the market from the current shortage to a surplus.