$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ When Oracle’s earnings confirmed a massive increase in AI and chip CAPEX, even at the cost of diluting shareholders just to stay competitive in the CAPEX race, that FOMO desperation validated the strength of the semiconductor sector. When Meta’s stock crashed after earnings due to its announcement of another huge AI CAPEX increase, the semiconductor sector ETF SOXL shot to the moon, gaining 40% in two days. The logic is simple.
$SUPER MICRO COMPUTER INC(SMCI)$ Short-term pain is significant, but long-term gain is even greater. Known: - $39B worth of orders from 20 companies. - A $7B equity financing that results in $1.25B in common equity (SMCI) and $3.75B as depository shares (SMCIP) in June, with $5B available immediately and a $2B At-The-Market (ATM) program in Q3/2026. Speculated: - The massive orders likely expand beyond traditional META and Coreweave to include other hyperscalers and large enterprises. - Rolling fulfillment could start as early as late 2026 and continue for 12 to 18 months. My take on the AI boom trading strategy: - Buyers (Mega cap-ex spenders): May remain under pressure until their massive investments translate into significant revenue/profi
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ SOXL finds support from accumulated volume at $172.52, and this level may hold a buying opportunity as an upward reaction can be expected when the support is being tested.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ CPI is the main driver for today's market, similar to yesterday. Now it makes sense why the USD rallied even as oil and the 10Y yield were fading yesterday. This unusual decoupling was due to the USD and market positioning for a potentially hot CPI today, driven by sustained high oil prices. The forecast for May's CPI is 0.6%. The market could react like this: - If CPI is hotter, the market sells off more than 3%. - If CPI is cooler, the market rallies more than 3%. - If CPI meets the forecast, the market could still do random up/down moves, with volatility around ±1.5%. The AI growth story is still solidly intact, but AI stocks can still sell off sharply with the broader market. If that ha