SOXL Surges 12% on Micron Upgrade and AMD Milestone
Direxion's 3x semiconductor ETF jumped 12.2% as Micron received a buy rating and AMD hit a $1 trillion market cap.
Key points
- SOXL gained 12.2% on Monday, reflecting the 3x leverage applied to strong performance in its top three semiconductor holdings.
- Micron received a buy rating and $1,500 price target from Stifel, while analysts expect the company to report 350% revenue growth to $51 billion.
- Advanced Micro Devices reached a $1 trillion market capitalization, and Intel rose 14% on hopes for a U.S.-China AI trade agreement.
The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) rose 12.2% by 11:20 a.m. ET Monday, driven by sharp gains in its top holdings. The fund’s 3x leverage amplified the daily performance of Micron, Advanced Micro Devices, and Intel, which collectively represent approximately 21% of the ETF’s total market capitalization.
According to The Motley Fool, the rally was fueled by specific corporate events and macroeconomic expectations rather than broad market sentiment. Stifel analyst Brian Chin reiterated a buy rating on Micron with a $1,500 price target, citing a durable memory upcycle and undersupplied markets.
Micron earnings expectations drive rally
Micron stock climbed nearly 3% following the analyst note, which highlighted potential 20% growth in DRAM sales for 2027. The company is scheduled to report fourth-quarter earnings on September 30. Analysts project revenue growth of 350% to $51 billion and an approximate tenfold increase in earnings to $31.35 per share.
AMD crosses one trillion market cap
Advanced Micro Devices advanced 9.1% to reach a $1 trillion market capitalization for the first time. This milestone contributed to the fund’s overall gain as momentum in the CPU and GPU specialist added significant weight to the ETF’s portfolio value.
Trade talks boost Intel outlook
Intel gained 14% amid expectations for a summit between U.S. President Trump and Chinese President Xi. Market participants anticipate the meeting may facilitate a deal on artificial intelligence that avoids severe regulatory conflicts while allowing continued industry growth and chip purchases.
