Stock Track | SOXL Plummets 5.67% Intraday as TSMC Price Hike Fuels Chip Inflation Worries and Leveraged Losses

Stock Track
Jul 27

Direxion Daily Semiconductors Bull 3x Shares (SOXL) plummeted 5.67% during intraday trading on Monday, erasing earlier gains as the semiconductor sector faced a sharp reversal.

The sell-off was triggered by reports that TSMC plans to raise advanced and mature process chip foundry prices by up to 10% in 2027, with an additional 10% to 15% surcharge on high-performance computing orders exceeding client forecasts. The news intensified concerns over chip inflation across the semiconductor supply chain, prompting a wave of profit-taking.

The Philadelphia Semiconductor Index has already pulled back as much as 18% from recent highs, with global trade friction and institutional cycle-peak warnings adding to sector volatility. As a 3x leveraged product tracking the top 30 U.S.-listed semiconductor companies, SOXL's losses were amplified, reflecting the heightened sensitivity of leveraged funds to underlying index declines.

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