Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 5.01% over a 24-hour period, reflecting a significant rebound in the leveraged semiconductor ETF.
The move was driven by a sharp rally in chip stocks, with semiconductor equities showing broad-based strength. Chip stocks stabilized after facing intense selling pressure last week, with memory chipmaker Micron Technology Inc surging 10% and shares of NVIDIA Corp and Broadcom Inc also moving higher.
The iShares Semiconductor ETF, which tumbled 10% on Friday, climbed 6% on the same day, indicating renewed investor confidence in the semiconductor sector. Market analysis suggests that while recent sell-offs were driven by interest rate fears, investors have not lost long-term confidence in the artificial intelligence theme that underpins many chip companies.