Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 5.34% during the pre-market session on Wednesday, indicating strong investor optimism toward the semiconductor sector.
The significant pre-market gain appears to be driven by two major developments in the artificial intelligence chip space. First, South Korea announced a massive 1 trillion won (approximately $687.8 million) investment project to develop AI semiconductors for on-device applications in areas like autonomous vehicles and robotics, involving major companies like Samsung Electronics and Hyundai Motor Group.
Secondly, reports indicate that ByteDance is accelerating the development of its in-house AI chips, with plans to produce over 100,000 units this year and discussions underway with Samsung Electronics for manufacturing. These developments signal growing demand and investment in the AI semiconductor ecosystem, which directly benefits the companies tracked by the SOXL ETF.
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