Retail Dip-Buyers Pile $6.1 Billion Into 3x Semiconductor ETF as Fund Sinks Over 40% in October

Investors poured a record $6.1 billion last week into the Direxion Daily Semiconductor Bull 3X ETF (SOXL), a leveraged fund tracking triple the daily moves of a popular chip index, only to absorb further losses as semiconductor selling persisted, FactSet data show. The ETF fell another 10.8% this week, its third straight weekly decline, and is down more than 43% month-to-date in October. On Thursday it plunged 20.5%, its worst single-day performance since June 23, while the unleveraged iShares Semiconductor ETF (SOXX) fell 6.8%. "The semiconductor stocks are extremely sensitive to changes in the AI infrastructure build-out. The market has begun to doubt the AI trade," said Mike Reynolds, vice president of investment strategy at Glenmede, on Friday. Despite the pullback, SOXX remains up nearly 59% year-to-date, prompting investors to reassess valuations after a sharp 2026 rally. The S&P 500 information technology sector notched its third consecutive weekly loss, its longest streak since March.