On June 18, Direxion Daily Technology Bull 3x (TECL) rose 5.25% in regular trading, trading at $230.37/share, with turnover of $153 million. The rally continues to be fueled by a comprehensive pricing upcycle across the global semiconductor supply chain and sustained AI computing infrastructure demand.

On the supply side, Japan faces an effective supply cutoff of tungsten hexafluoride in July, while sputtering target prices have surged over 40%. Semiconductor equipment makers have taken the rare step of proactively requesting price increases of 3%-4%. Silicon wafer manufacturers have also initiated a new round of price hikes. SEMI has raised its global front-end equipment market forecast to $152.2 billion, representing year-over-year growth of 23.5%. WSTS projects the global semiconductor market will expand to $1.51 trillion.

On the demand side, AI server buildouts continue to drive exponential growth in advanced 12-inch wafer consumption, with AI servers requiring 3.8 times more silicon wafers than conventional servers. The convergence of supply constraints and AI-driven demand acceleration is reinforcing the structural bull case for the broader technology sector.

The fund invests at least 80% of its net assets in financial instruments that provide 3X daily leveraged exposure to a technology sector index, amplifying sector movements in both directions.

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