New York, June 2, 2026, 11:15 EDT
- SOXL was up roughly 12% in morning trading as chip stocks gained. On the other side, SOXS dropped around 13%.
- Fresh retail and analyst attention on SOXL’s one-year jump and on tactical trading in leveraged semiconductor funds sparked the move.
- Nvidia, Marvell and the rest of the AI infrastructure plays are still leading here, but daily-reset leverage can swing both ways.
Direxion’s 3x bullish semiconductor ETF rallied Tuesday, with a surge in chip stocks drawing more retail attention to the leveraged product.
SOXL, the Direxion Daily Semiconductor Bull 3X ETF, was up roughly 12.4% to $255.23 late Tuesday morning. Its opposite number, SOXS, dropped 12.5% to $5.475. The iShares Semiconductor ETF, often used as a benchmark, rose about 4.2%.
Timing is key now, since the trade isn’t only about semiconductor earnings anymore. It’s a momentum bet, a retail trade, and a risk management play, all packed into a daily resetting leveraged product.
SOXL turned $100,000 into about $1.28 million over the year ending May 27, 2026, according to a 24/7 Wall St. story last week. The triple-leveraged ETF rode a big jump in chip stocks, fueled by surging demand for AI infrastructure. SOXX gained 168% in the same period, the article said. Nvidia, Broadcom and AMD were cited as major drivers.
SOXL has jumped 1,150% over the past year, according to a Seeking Alpha post from DM Martins Research published Monday. The article said that sticking to disciplined tactical trades in and out of the ETF could build wealth long term. Daniel Martins, who runs DM Martins Research, said in the piece that “disciplined simplicity” gives an edge in managing money. The article called SOXL a tool for trading bubbles, rather than a usual long-term hold. Seeking Alpha
Chip stocks took off Tuesday, with the Philadelphia SE Semiconductor Index up 3% after Marvell Technology leapt. Nvidia CEO Jensen Huang called Marvell the next “trillion dollar company” during Computex in Taipei, Reuters said. “The day’s AI-related news confirms the insatiable demand” for the group, Carson Group’s chief market strategist Ryan Detrick told Reuters. Reuters
Marvell shares jumped about 25% to $274.66 in live trading, putting its market cap close to $246 billion. According to Reuters, the stock hit a record high after Huang’s comment. Nvidia put $2 billion into Marvell earlier this year for custom AI chips, networking equipment and central processors.
Nvidia is still the anchor for the market. CEO Jensen Huang said Tuesday Nvidia had lined up enough supply to support “very robust growth” in CPUs and GPUs, but said supply was still tight. GPUs run and train AI systems, while CPUs handle other computing work in servers and PCs. Reuters
That’s where SOXL comes in. Direxion says SOXL targets 300% of the daily move in the NYSE Semiconductor Index before fees and expenses. SOXS aims for 300% of the inverse. But Direxion also says right on its site these ETFs are meant for one-day use, and investors shouldn’t expect triple or negative triple the index’s return if they hold them longer.
Retail traders aren’t acting as one group. In a Moomoo community post tied to SOXS from a day ago, one user wrote, “Alright im in!”, suggesting that some are still betting on a reversal, even as the bearish ETF dropped Tuesday. Moomoo
Chip stocks could keep climbing, and daily leverage might boost gains if the trend is steady. But if the market chops sideways, or there’s a big drop in a day, or AI chip demand hopes fade with Nvidia, returns may take a hit fast. Direxion says in its materials that its leveraged and inverse ETFs carry more risk than non-leveraged funds.
Macro risks are in play for the trade. Reuters said investors are watching if inflation and possible rate hikes could hurt the U.S. stock rally. Broadcom’s next results could test the AI trade after the Philadelphia semiconductor index surged about 80% off its March 30 low. Rising bond yields can weigh on growth stocks by pushing up borrowing costs and making equities less appealing versus bonds.
Traders continue to favor exposure over patience. SOXL traded over 20 million shares by late morning. SOXS volume crossed 200 million shares, with investors buying and selling both to take different sides on the AI-chip move.
