Stock Track | SOXS Plummets 5.05% Intraday as Semiconductor Stocks Rally on Industry Upcycle and AI Boom

Stock Track03-10 22:55

Direxion Daily Semiconductors Bear 3x Shares (SOXS) fell sharply by 5.05% during intraday trading on Tuesday. The leveraged inverse ETF, which seeks to deliver three times the inverse daily performance of semiconductor stocks, declined as the underlying semiconductor sector showed strength.

The movement comes amid a broader rally in semiconductor stocks, driven by the global semiconductor industry entering a new upcycle characterized by an artificial intelligence-driven computing power boom. According to market analysis, the US semiconductor market is experiencing a rotation from high-valuation AI designers to lower-valuation equipment and memory plays, with companies like Micron Technology seeing significant price appreciation year-to-date. Equipment stocks have also been popular, indicating that AI-related capital expenditure is flowing toward the equipment sector.

As a bearish leveraged ETF, SOXS moves inversely to semiconductor stocks. The positive sentiment and capital rotation within the semiconductor sector, fueled by expectations of a memory cycle reversal and sustained AI investment, have put downward pressure on the inverse fund during the trading session.

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