By TradingView
Publication Date: 2026-10-22 20:07:00
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:SOXL) plunged almost 20% on Thursday, hitting a six-month low as surging oil prices, concerns over artificial intelligence (AI) financing and a broader technology selloff rattled semiconductor investors.
SOXL was among the most actively traded ETFs during midday trading Thursday, with shares falling to levels last seen in April. The selloff extended across the semiconductor sector, with the VanEck Semiconductor ETF SMH dropping around 5.8% and the iShares Semiconductor ETF 
SOXX tumbling more than 6.5%. Both funds hit fresh three-month lows.
Why SOXL’s Losses Are So Severe
Unlike traditional semiconductor ETFs, SOXL targets 300% of the daily performance of its benchmark index before fees and expenses. That leverage can magnify both gains and losses. The fund’s objective applies to a single trading day, not longer holding periods.
Consequently, a broad sector selloff can translate into a substantially larger decline for SOXL, making it particularly vulnerable when semiconductor stocks face simultaneous macroeconomic and AI-related headwinds.
Thursday’s plunge puts the spotlight on whether investors will treat the selloff as a buying opportunity or continue reducing exposure to one of the market’s most volatile AI-linked trades.
Technical Talk
SOXL shares were down 19.76% at $82.83 at the time of publication on Thursday, according to Benzinga Pro data. The significant decline reflects broader market pressures impacting…
