Morgan Stanley’s upgrade of AI-related semiconductor stocks sparks a 46% four-day rally in the leveraged ETF SOXL.
The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) climbed 16.1% by midday, extending a 46% gain over the past four sessions. The rally follows Morgan Stanley’s reassurance that hyperscaler revenue growth will sustain semiconductor demand through 2024.
Capital investment in the sector is projected to reach $1.2 trillion this year, with analysts calling the estimate conservative. SOXL, which tracks a 3x leveraged index of semiconductor stocks, had lagged the broader sector’s move until today’s surge.
Top holdings including Micron (MU), Intel (INTC), and AMD (AMD) drove the gains, reflecting renewed investor confidence in chipmakers tied to AI infrastructure.