The Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 6.02% in pre-market trading, marking a significant rebound for the leveraged semiconductor exchange-traded fund.
The rally was driven by a broad recovery in chip and storage shares, underpinned by news that Taiwan Semiconductor Manufacturing Company (TSMC) has approved a massive capital expenditure injection of up to $20 billion for its advanced chip plant in Arizona. This record capacity expansion is seen as igniting a prosperity cycle for the semiconductor equipment sector, fueling optimism for the entire semiconductor industry's growth trajectory driven by sustained AI computing demand.
Key semiconductor names contributed to the positive sentiment, supporting the sector-specific ETF's performance during the pre-market session.
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