SOXL Semiconductor Leveraged ETF Sees Nearly $7 Billion Net Inflow in Two Months
As of August 24, the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) has attracted nearly $7 billion in net inflows over the first two weeks of July and August, despite a significant pullback in global chip stocks since late June. SOXL is currently priced at $111.16, down over 60% from its previous high of $302. This ETF tracks the NYSE Semiconductor Index, with holdings including Nvidia, Micron Technology, AMD, and Broadcom. A Bank of America global fund manager survey in August revealed that 53% of respondents chose to "go long on global semiconductors," a notable decline from last month's historical peak of 82%. Fidelity warned that the semiconductor industry's approximately 40-month earnings cycle may be nearing its peak, suggesting that leveraged products like SOXL, which reset daily, could amplify losses if the industry cycle reverses. Goldman Sachs significantly raised its expectations for global semiconductor fab equipment spending for 2026 to 2028 to $150 billion, $218 billion, and $281 billion, believing that the AI-driven semiconductor supercycle is likely to extend through 2028. JPMorgan also maintains a bullish outlook, stating that the semiconductor sector, following its recent pullback, is attractive.
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