Direxion Daily Semiconductor Bull 3X Shares

SOXL

Market cap $14.8B

Direxion Daily Semiconductor Bull 3X Shares ETF remains a Buy, driven by strong momentum in semiconductor stocks and continued AI infrastructure investment. SOXL is highly volatile and best suited for short-term, active traders who can time entries and exits; not recommended for long-term holding. Risks are significant due to leverage and compounding effects; investors must actively monitor positions and be prepared for rapid losses.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

SOXL's ultra-leveraged design hasn't delivered long-term outperformance despite semiconductor sector strength since 2020. Difficult to overcome compounding effects on large drawdowns make recovering losses in leveraged ETFs mathematically challenging. 3X leveraged ETFs like SOXL are typically poor choices for long-term wealth creation as a buy-and-hold idea.

Nvidia has been sitting pretty atop the list of largest companies. After its fiscal year 2026 Q2 earnings, it sent a message that it plans to remain there.

The tech sector pullback last week was a healthy and mild correction after the AI-driven rally, not a sign of a bursting bubble, yet. Direxion Daily Semiconductor Bear 3X Shares ETF and Direxion Daily Semiconductor Bull 3X Shares ETF are high-risk, triple-leveraged ETFs, but, in our opinion, are the easiest way to play on volatile times, keeping in mind, however, they are not for the faint-hearted. We think traders should take profits on SOXS now and reallocate to SOXL ahead of Nvidia earnings and a potential rate cut, expecting a short-term bounce.

Semiconductors are essential to modern tech, but investing requires understanding their cyclical, capital-intensive, and segmented industry structure. Long-term outperformance comes from picking top-quartile companies with high ROE, proprietary tech, and supply chain control—most others underperform. Industry cycles are inevitable, but secular demand from AI, data centers, EVs, and automation keeps raising the baseline for growth.

The ICE Semiconductor Index has been up more than 25% over the past 90 days. And Nvidia (NVDA) is printing new highs on a regular basis.

TORONTO--(BUSINESS WIRE)---- $SOXL #Cboe--Cboe Canada Inc. is pleased to announce the launch of four new BetaPro ETFs from Global X Investments Canada Inc.

tech sector's struggles early in 2025 are well-documented. But those doldrums rapidly gave way to bullish sentiment that's carried gauges such as the Nasdaq-100 (NDX) and the S&P Technology Select Sector indexes to or close to new highs.

Risk is in vogue with ETF investors again. Signs of speculative fervor are increasingly clear — but are investors willing to jump in?