Quick Read – SOXS surged ~10% and Micron dropped ~8% after Chinese DRAM maker CXMT announced an $8.55 billion IPO, nearly doubling its initial fundraising target. – US sanctions block CXMT from producing HBM or supplying US customers, leaving Micron’s highest-margin AI memory…
siness untouched for now. – SOXS has lost 97% over the past year and essentially everything over five years, as daily-reset leverage compounds losses whenever chips rally. – The Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA:SOXS) is up again today, climbing roughly 11% as memory chip stocks lead a broad semiconductor pullback. The move is a mirror image of what is happening under the hood: Micron Technology (NASDAQ:MU) is down about 8% intraday and SK Hynix (NASDAQ:SKHY) is down 11%, dragging the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) down with them, and SOXS is designed to deliver three times the daily inverse of that basket
So, when chips are down by a certain amount, SOXS is generally up about 3x that (and vice versa). The Trigger: A Chinese DRAM IPO Reprices the Competitive Map According to reporting from Barron’s, Chinese memory maker CXMT (ChangXin Memory Technologies) is set to begin taking orders for a listing on Shanghai’s STAR Market, aiming to raise roughly $8.5 billion, nearly double its initial target, at an implied market capitalization over $80 billion. That is a much larger war chest than investors expected for the country’s leading DRAM producer.
Are You Ready To Retire, Or Years Behind? Why it lands so hard on Micron and SK Hynix: DRAM is a near-oligopoly. Three companies, Micron, Samsung, and SK Hynix, have historically controlled the bulk of global supply.