Why Direxion Daily Semiconductor Bull 3X ETF Jumped Today

The Direxion Daily Semiconductor Bull 3X Shares ETF (NYSEMKT: SOXL) has got its momentum backmost -- astatine slightest for now.

This ETF, which aims to instrumentality the show of semiconductor stocks arsenic a full and multiply that show -- up oregon down -- by 3x each trading day, soared 16.1% done 11:05 a.m. ET today. Over the past 4 trading days, it's up a staggering 46%.

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But why?

Morgan Stanley says it's harmless to ain semiconductor stocks again

The truly large quality successful semis happened yesterday, erstwhile analysts astatine Morgan Stanley sounded the all-clear for artificial quality stocks, reassuring investors that hyperscaler revenues are increasing accelerated capable to enactment each the semiconductor chip-buying they program to bash this year.

In total, superior concern this twelvemonth is expected to scope $1.2 trillion crossed the manufacture -- and that could beryllium a blimpish estimate. The Direxion Daily Semiconductor Bull 3X Shares ETF didn't respond instantly to this news, guaranteeing continued request for semiconductors, gaining little than 2% yesterday -- but it's up overmuch much today.

What this means for the Direxion Daily Semiconductor Bull 3X Shares ETF

But again, why?

The reply astir apt lies successful the constituent stocks that marque up the Direxion Daily Semiconductor Bull 3X Shares ETF, which concentrates astir 60% of its holdings crossed conscionable 10 stocks. Three of SOXL's apical five holdings -- Micron (NASDAQ: MU), Intel (NASDAQ: INTC), and Advanced Micro Devices (NASDAQ: AMD) -- are each up rather a batch today, much than 7% each. And all five of these apical 5 are up astatine slightest a little.

There's adjacent immoderate circumstantial bully quality driving the gains, with Bank of America doubling down connected its Micron endorsement and calling the banal an "enhanced buying opportunity."

Looks similar SOXL investors heard that large and clear.

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