Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a significant surge of 6.75% in Friday's pre-market trading, reflecting strong bullish sentiment in the semiconductor sector. This impressive gain comes on the heels of several positive developments in the chip industry, including a major IPO announcement and advancements in AI chip technology.

The surge in SOXL, which seeks to deliver three times the daily performance of the ICE Semiconductor Index, was driven by multiple factors. A key catalyst was the announcement of a ¥156.6 billion ($1.05 billion) IPO by Tekscend Photomask, a leading Japanese semiconductor materials manufacturer. This IPO, the second-largest in Japan for 2025, underscores growing investor interest in critical semiconductor technologies, particularly in advanced photomasks for 2nm and 1nm chip production.

Further fueling the sector's momentum was Google's recent deal with AI company Anthropic, which allows access to up to 1 million of Google's tensor processing units (TPUs). This agreement highlights the increasing demand for specialized chips in AI applications and signals potential growth in this segment of the semiconductor market. Additionally, other major players in the industry, including Navitas, STMicroelectronics, AMD, Broadcom, and Super Micro Computer, showed strength in overnight trading, contributing to the overall positive sentiment. Investors should note, however, that while SOXL's significant rise reflects amplified optimism about the semiconductor industry's near-term prospects, leveraged ETFs carry higher risks and are primarily designed for short-term trading rather than long-term investing.