On July 28, Direxion Daily Semiconductors Bull 3x Shares declined 5.18% overnight, trading at $121.63/share, with turnover of $111 million. A broad chip selloff swept through the U.S. market as investors grew increasingly concerned about the sustainability of AI infrastructure investment.

The Philadelphia Semiconductor Index plunged nearly 5%, with NVIDIA shares tumbling close to 5%. Compounding the pressure, TSMC plans to raise wafer fabrication prices for both advanced and mature process nodes by up to 10% in 2027, while imposing an additional 10% to 15% premium surcharge on new high-performance computing chip orders exceeding original forecasts. These developments fueled chip inflation fears and intensified profit-taking across the semiconductor sector.

As a 3x leveraged ETF tracking the 30 largest U.S.-listed semiconductor companies, the fund amplified the underlying index losses. The SOX index has now pulled back as much as 18% from its recent highs, with institutions previously issuing cycle-peaking warnings contributing to persistent selling pressure.

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