Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 5.01% over the past 24 hours, as a wave of robust earnings from major technology companies sparked a broad recovery in the battered semiconductor sector.

The rally was driven by a series of positive catalysts. Lam Research shares jumped over 7% after the chip-equipment maker topped quarterly expectations and issued upbeat guidance, citing strong AI-driven demand for its tools. Microsoft also beat estimates with impressive revenue growth and accelerating Azure cloud momentum, while Applied Materials received target price hikes from HSBC, Citi and UBS. These developments helped lift the broader chip sector, with SOXL benefiting from the amplified upside of its 3x leveraged structure.

The semiconductor space had been reeling from a sharp sell-off in recent weeks, with SOXL losing nearly two-thirds of its value from peak levels amid concerns over the sustainability of AI capital expenditure. However, market observers noted that the prior rout appeared to be a disorderly decline rather than a full-blown panic, leaving room for a sharp rebound as dip-buyers stepped in on the back of improving earnings sentiment.