Record inflows into leveraged chip ETF turned sour as semiconductor stocks kept falling
Investors poured a record $6.1 billion into SOXL betting on buying the dip, but chip stocks extended their slide for a third straight week.
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what happened
Investors put a record $6.1 billion into the Direxion Daily Semiconductor Bull 3X ETF (SOXL) last week, according to FactSet data, hoping to buy a dip in chip stocks. The dip kept deepening. SOXL fell another 10.8% this week, its third straight weekly decline, and is on track for a drop of more than 43% in October.
The selloff reflects renewed doubts about returns on the buildout of artificial intelligence infrastructure. On Thursday SOXL dropped 20.5%, its worst day since June 23, while the iShares Semiconductor ETF (SOXX) slid 6.8%. The S&P 500's information-technology sector booked its third consecutive weekly loss, its longest losing streak since March, FactSet said.
why it matters
Leveraged funds magnify daily index moves, so sharp swings in chips pass quickly to investors who bought them. Glenmede's Mike Reynolds said investors are reassessing the AI theme after SOXX's gain of almost 59% so far this year, a valuation question that could keep weighing on the sector.
market impact
Chips and S&P 500: leveraged-ETF outflows and AI-spending doubts add pressure on semiconductor stocks and indices
tags
instruments
sources
- Investors piled a record sum into a leveraged semiconductor ETF last week. Things didn't work out. — Dow Jones Newswires, 23 October 2026 at 21:46 UTC
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