Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a significant after-hours plunge of 5.92%, reflecting continued volatility in the semiconductor sector during extended trading.
The sharp decline follows Advanced Micro Devices (AMD) reporting better-than-expected Q4 FY2025 revenue but issuing guidance for the first quarter that fell short of market expectations. AMD's stock closed down 17.31% in the previous session, marking its largest single-day drop since May 2017. This triggered a broad sell-off across chip stocks, with memory storage companies like SanDisk and Micron Technology also posting substantial losses overnight.
The weakness in U.S. semiconductor stocks appears to be spilling over to global markets, contributing to the after-hours pressure on leveraged ETFs like SOXL that track the sector.