Money kept flowing into leveraged semiconductor ETFs even as global chip stocks have sold off since late June. Direxion Daily Semiconductors Bull 3X Shares (SOXL) took in nearly $7 billion in net inflows across July and the first two weeks of August, according to the report. As of Aug. 24, the fund traded at $111.16, more than 60% below its prior $302 high. SOXL tracks the NYSE Semiconductor Index and holds names including Nvidia, Micron, AMD and Broadcom.
Semiconductors remain one of the most crowded trades in global markets. Bank of America’s August global fund manager survey showed 53% of respondents were long global semiconductors, down from a record 82% the prior month. Views on the sector are split: Fidelity warned the roughly 40-month earnings cycle may be nearing a peak and said daily-reset leveraged products such as SOXL could magnify losses if the cycle turns, while Goldman Sachs lifted its 2026-2028 global wafer-fab equipment spending forecasts to $150 billion, $218 billion and $281 billion. JPMorgan also stayed constructive on the recent pullback.
Money kept flowing into leveraged semiconductor ETFs even as global chip stocks slid sharply from late June.
Direxion Daily Semiconductors Bull 3X Shares (SOXL) drew nearly $7 billion in net inflows during July and the first two weeks of August, according to the report, showing a clear buy-the-dip pattern. As of Aug. 24, the fund was quoted at $111.16, down more than 60% from its earlier $302 peak.
SOXL tracks the NYSE Semiconductor Index and holds companies including Nvidia, Micron Technology, AMD and Broadcom.
Semiconductors remain one of the most crowded trades globally. Bank of America’s August global fund manager survey showed 53% of respondents were long global semiconductors, down from a record 82% in the prior month.
Views are divided on the sector. Fidelity warned that the roughly 40-month earnings cycle for semiconductors may be nearing a peak, saying daily-reset leveraged products such as SOXL could amplify losses if the cycle turns. Goldman Sachs, by contrast, raised its forecasts for global wafer-fab equipment spending in 2026, 2027 and 2028 to $150 billion, $218 billion and $281 billion, respectively, and said an AI-driven semiconductor supercycle could last through 2028. JPMorgan also kept a bullish stance, saying the recent pullback makes the sector attractive.
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