Why Direxion Semis Bull 3X (SOXL) fell 35.68%
Direxion Semis Bull 3X (SOXL) fell 35.68% on November 6, 2026 — Neocloud oversight sinks chips; Micron leads.
What happened
The Chip Supply Chain group fell about 12%, with SMH down 10.3%, as the wider tech selloff hit chip stocks after Microsoft tightened oversight of neocloud providers amid data center delays and rising costs.
Why it moved
SOXL holds a fixed 3x multiple of its index's daily move, so the roughly 10% SMH drop amplified to about −36%. AMD and Marvell were the leading decliners in that move, not its cause.
Why it matters
This is the Chip Supply Chain theme: equipment makers and broad-semis beta rode the AI capex wave, and Intel's weak guidance and capex doubts are now dragging the complex lower.
What would break the thesis
Daily resetting means the 3x exposure works in reverse on a rebound, so a sharp SMH recovery would lift SOXL by a similar multiple. Continued capex doubts would keep the group under pressure.