SOXL Jumps 12% on Micron, AMD, and Intel Momentum
SOXL gained 12.2% as Micron, AMD, and Intel drove gains through earnings expectations, a market cap milestone, and trade hopes.
Key points
- SOXL rose 12.2% as Micron, AMD, and Intel accounted for 21% of its holdings.
- AMD reached a $1 trillion market cap while Intel gained 14% on trade hopes.
- Micron faces September 30 earnings with analysts projecting a 350% sales increase.
The Direxion Daily Semiconductor Bull 3X ETF (SOXL) surged 12.2% in mid-morning trading on Monday. This move was driven by sharp gains in its three largest underlying positions: Micron Technology, Advanced Micro Devices, and Intel. Together, these three companies represent approximately 21% of the ETF’s total market capitalization.
Micron Technology shares rose nearly 3% following a reiterated buy rating from Stifel. The firm cited a durable memory upcycle and undersupplied markets. Separately, AMD stock climbed 9.1% after the company’s market capitalization reached $1 trillion for the first time. Intel shares jumped 14% on speculation regarding upcoming diplomatic talks between U.S. and Chinese leaders.
Micron faces significant earnings expectations
Micron is scheduled to report its fourth-quarter results on September 30. Analysts expect the company to report a 350% increase in sales, reaching $51 billion. Earnings per share are projected to grow roughly tenfold to $31.35. Stifel’s Brian Chin maintains a $1,500 price target, highlighting potential 20% growth in DRAM sales by 2027.
AMD hits trillion-dollar valuation milestone
AMD crossed the $1 trillion market capitalization threshold on Monday. This milestone reflects sustained momentum in its CPU and GPU segments. The company’s rise contributes directly to the performance of leveraged semiconductor funds. Such valuation shifts often attract further institutional interest, reinforcing the positive price action seen in related ETFs.
Intel benefits from trade optimism
Intel’s 14% gain stems from hopes that the upcoming summit between President Trump and President Xi will resolve tensions in the AI sector. Investors anticipate a deal that avoids regulatory disruptions while allowing continued growth in chip purchases. This sentiment supports the broader semiconductor supply chain, directly benefiting Intel’s revenue outlook.
