Stock Track | SOXL Plunges 5.06% in Pre-Market as Chip Stocks Slide Following AMD's Weak Guidance

Stock Track
Feb 05

Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a significant pre-market plunge of 5.06%, reflecting heightened volatility in the semiconductor sector during early trading hours.

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 Asian markets, with chip-related stocks in Japan and South Korea opening lower and tracking the overnight slump in U.S. tech shares.

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