On September 17, Direxion Daily Semiconductors Bull 3x Shares rose 9.28% in regular trading, trading at approximately $113.37/share, with turnover of $12.71 billion. The surge was driven by a confluence of supply-chain tightness and technical rebound momentum, magnified by the fund's triple-leverage mechanism.
On the news front, Korean tech media reported that delivery lead times for critical semiconductor equipment components have more than doubled, with some Japanese-sourced parts now requiring up to 40 months for delivery. Deposition equipment parts that previously arrived in four months now take ten months, while packaging equipment components face delays of roughly 50% beyond normal timelines. Industry insiders noted that upstream manufacturers failed to expand capacity ahead of the AI-driven demand surge, and even immediate expansion would be insufficient to meet current needs.
The supply squeeze lifted broad semiconductor names in pre-market trading, with SK Hynix and Western Digital rising nearly 2%, while Corning and Marvell Technology gained over 2%. The ETF had plunged 16.66% on September 14 amid rate-hike fears and geopolitical risks, creating significant oversold conditions that compounded with the supply-shortage catalyst to fuel the sharp rebound.
The fund invests at least 80% of its net assets in financial instruments that provide 3X daily leveraged exposure to an index tracking the thirty largest U.S. listed semiconductor companies. The fund is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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