Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 6.36% in pre-market trading on Tuesday, reflecting a strong rally in the semiconductor sector. The leveraged ETF's significant move comes as major chip stocks across the board posted substantial gains, with industry leader Nvidia leading the charge.

The semiconductor sector saw widespread gains, with Nvidia up 5%, while other major players like Broadcom, Micron, and Marvell gained around 3%. Industry giants such as TSMC, Intel, and AMD also rose by approximately 2%. This sector-wide rally appears to be primarily driven by positive news surrounding Nvidia's latest business venture.

The catalyst for this upward movement is the announcement that Nvidia will supply semiconductors to Humain, a Saudi Arabian AI company, for a massive 500-megawatt data center project. This development, reported by Bloomberg News, highlights the growing global demand for advanced AI infrastructure. Nvidia CEO Jensen Huang announced the partnership at the Saudi-US Investment Forum in Riyadh, coinciding with President Donald Trump's visit to the region. The deal not only underscores Nvidia's dominant position in AI chip manufacturing but also signals potential growth opportunities for the entire semiconductor industry in emerging markets.