Direxion Daily Semiconductors Bull 3x Shares (SOXL) soared 5.14% in pre-market trading on Monday, extending a multi-day recovery as retail investors aggressively bought into leveraged semiconductor ETFs following the sector's worst monthly rout since the 2008 financial crisis.

The Philadelphia Semiconductor Index tumbled 21% in July, marking its steepest monthly decline in nearly two decades and pushing SOXL from around $150 to approximately $87 — a drop exceeding 40%. That extreme sell-off created deeply oversold conditions, triggering intense technical repair demand. At the end of July, the chip index staged a two-day rebound of 8.3%, which quickly drew the attention of bargain-hunting retail traders. According to market data, individual investors poured a record $12 billion in net inflows into semiconductor-related ETFs in just the final week of July, with three-times leveraged funds like SOXL attracting particularly strong interest. Analysts noted that this unprecedented inflow accounted for 25% of all ETF net inflows over that five-day period, providing substantial buying support for the ongoing rebound.

While longer-term questions remain about the sustainability of AI-driven capital spending and chip sector valuations, the near-term surge in SOXL reflects heightened retail participation and a swift shift in sentiment as traders bet on a continued recovery in semiconductor stocks.