Direxion Daily Semiconductors Bull 3x Shares (SOXL), a leveraged ETF tracking the ICE Semiconductor Index, surged 5.86% in pre-market trading on Monday. This significant uptick reflects a broader rally in the semiconductor sector, fueled by positive developments in both global and Chinese markets.

The surge in SOXL comes as semiconductor shares in Hong Kong experienced substantial gains. Notable performers included INNOSCIENCE, BATELAB, and SMIC, with increases ranging from 3.5% to 10.67%. This upward trend is largely attributed to China's 14th Five-Year Plan, which emphasizes technological self-sufficiency and strength, providing a strong policy catalyst for the sector.

Adding to the bullish sentiment, reports indicate that global tech giants Samsung and SK Hynix have notified customers of potential DRAM and NAND contract price increases of up to 30% in the fourth quarter. This development, coupled with growing demand for AI computing power driving expansion in logic and storage manufacturing, has created a favorable environment for semiconductor stocks worldwide. Analysts suggest that the domestic substitution trend in China's chip industry, reinforced by the country's technological self-reliance strategy, is likely to provide continued support for the sector, benefiting ETFs like SOXL that offer leveraged exposure to semiconductor performance.