Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a 24-hour plunge of 5.05% during night session trading on Wednesday.

The decline was driven by concerns over chip inflation after TSMC announced plans to raise advanced and mature process wafer fabrication prices by up to 10% starting in 2027, with additional surcharges of 10% to 15% on high-performance computing chip orders exceeding initial forecasts. Wall Street strategists also warned that Korean DRAM export prices have surged 370% year-over-year, raising fears that chip inflation could pressure the sustainability of the current AI boom.

Additionally, the ETF had surged nearly 15% in the prior session, making overnight profit-taking a contributing factor to the pullback. The fund provides 3X daily leveraged exposure to an index tracking the thirty largest U.S. listed semiconductor companies.