Direxion Daily Semiconductors Bear 3x Shares (SOXS) plummeted 6.93% in early intraday trading on Tuesday.
The decline comes as the semiconductor industry shows robust growth prospects, with the Foundry 2.0 market projected to generate $320 billion in revenue for 2025, representing a 16% year-over-year increase, according to a Counterpoint Research report. This growth is driven by steady demand for AI GPUs and AI-specific application-specific integrated circuits (ASICs) in advanced process manufacturing and packaging sectors.
Pure-play foundries like Taiwan Semiconductor Manufacturing are leading the AI-driven expansion, while outsourced semiconductor assembly and test providers benefit from spillover orders. The positive outlook for semiconductor companies negatively impacts inverse leveraged ETFs like SOXS, which bets against the sector.
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