It's Thursday, 2 p.m., and do you know where the Nasdaq is?
It's up a respectable 1.2% -- but the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL +0.99%) is up much, much more, surging past 14.1% on some billion-dollar-plus news items in semiconductors today.
Image source: Getty Images.
Micron boosts the market
The first news comes from Micron (MU +1.93%) stock, which is surging nearly 8% after announcing it's investing up to $3 billion "to strengthen the U.S. semiconductor supply chain ecosystem," including by loaning GlobalWafers Co., Ltd. $500 million to help build its 300mm raw silicon wafer manufacturing facility in Sherman, Tex., and its signing a 10-year deal to buy the wafers GlobalWafers churns out.
In related news, Reuters is reporting that Meta Platforms (META 0.06%) has signed a multi-year supply agreement to source NAND flash memory for its data centers from Sandisk (SNDK +2.67%), and is also buying DRAM from Samsung, and fiber optic cables from Sumitomo Electric, and Iris artificial intelligence chips from Taiwan Semiconductor Manufacturing (TSM +1.01%) -- with Broadcom (AVGO +1.90%) doing the chip design work.
It's all part of a Meta plan to spend $145 billion building out AI infrastructure this year alone.
NYSEMKT: SOXL
Key Data Points
3x the risk, 3x the gain
Think all the above might be enough to get semiconductor investors excited? Today it is, for sure. And several of the companies making headlines today -- Micron, Broadcom, and Taiwan Semiconductor Manufacturing -- are components of the Direxion Daily Semiconductor Bull 3X Shares ETF, too.
Their share price gains directly translate into upwards momentum for the ETF, and once 3x'ed... well, that's how you take a 1.2% Nasdaq gain, and parlay it into a 14.1% skyrocket for this heavily leveraged bet on semiconductor stocks.
