Direxion Daily Semiconductor Bull 3x Shares에 대한 매도 수량은 투자자에게 Direxion Daily Semiconductor Bull 3x Shares의 주식 하락에 베팅하는 정도를 알려줍니다. 매도 수량 데이터는 2주마다 업데이트됩니다.

Direxion Daily Semiconductor Bull 3x Shares (ARCA:SOXL), 공매도 수량 보고

Direxion Daily Semiconductor Bull 3x Shares

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Direxion

The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. The index is a rules-based, modified float-adjusted market capitalization-weighted index that tracks the performance of the thirty largest U.S. listed semiconductor companies. The fund is non-diversified.

Dreyfus Trsy Prime Cash Mgmt - In 0 -

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Direxion Daily Semiconductor Bull 3X Shares

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엔비디아(NASDAQ:NVDA)가 지난 1년 동안 234.09%의 수익률로 사상 최고가를 기록하면서, 젠슨 황이 이끄는 이 칩 거대 기업과 관련된 여러 상장지수펀드(ETF)들도 같은 기간 동안 놀라운 성장을 보였습니다. 이는 이 회사의 시장 영향력이 상당함을 반영한다.

엔비디아 주식이 지난 1년 동안 230% 이상 상승 vs 관련된 일부 ETF는 거의 500%까지 급등

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ASML

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최근 선출된 네덜란드 총리는 ASML 홀딩 NV(NASDAQ:ASML)가 중국 기업들에 수리 및 유지 관리 서비스를 지원하는 것을 차단할 것으로 예상된다.

네덜란드 정부의 표적이 된 ASML의 중국 사업: 동서 긴장의 중심에 있는 반도체 기업들

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Technology Select Sector SPDR Fund(NYSE:XLK)가 5% 이상 하락하고 광범위한 시장 성과를 측정하는 S&amp;P 500 지수보다 저조한 성과를 거두면서 8월 2일로 끝난 주에 기술 분야가 급락했다. 지난주에 해당 부문을 끌어온 요인에 대한 요약과 이러한 주식이 단기 및 중기적으로 어디로 향하고 있는지에 대한 전망은 다음과 같다.

기술주 급락에 Invesco QQQ Trust는 조정 구간 진입, 엔비디아는 지난주 5% 이상 하락

While the S&amp;P 500 Index continues its post-election surge, breaking through key resistance levels, <a href="https://www.benzinga.com/topic/nasdaq-100">the NASDAQ 100</a> is struggling to keep up.
This catch-up is prompting JPMorgan analyst Jason Hunter to ask: Is this a shift in market leadership or a temporary pause for the tech-heavy index?
<h1 class="wp-block-heading">S&amp;P 500 Breaks Out, NASDAQ 100 Stalls</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png" alt="" class="wp-image-643450" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
After the S&amp;P 500 re-accelerated through April's channel resistance and the 5850-5878 highs post-election, the index remains firmly bullish, with key support holding in the 5600s. The next resistance levels are now pegged at 6166 and 6194. Meanwhile, the NASDAQ 100 has faced a roadblock, unable to surpass its August rebound high. 
Hunter highlights that despite a broad market rally, the NASDAQ has underperformed, suggesting a potential leadership shift away from tech.
This divergence between the two indices is critical. If the NASDAQ 100 fails to break through its recent range, it would further support the idea that a regime change is in the cards — one where sectors outside of tech, like communication services, could be driving the market forward.
Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41214202/ishares-semiconductor-etf-soxx-approaching-death-cross-despite-recent-gains-should-inves">iShares Semiconductor ETF (SOXX) Approaches Death Cross Despite Recent Gains: Should Investors Worry?</a>
<h1 class="wp-block-heading">Communication Services Steals The Spotlight</h1>
Interestingly, while the NASDAQ 100 as a whole struggles, the Communication Services sector has been leading the charge in the index's breakout. Good news for investors in the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) and the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)
Tech and semiconductor stocks have lagged, clustered just below resistance. Relevant for investors in the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), the Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>).
Hunter's outlook suggests that in the coming weeks these hardware-oriented stocks may get "dragged higher" if the broader market rally continues. The question remains: Will they catch up, or will they continue to underperform as the rally unfolds?
<h1 class="wp-block-heading">Semiconductor Struggles: A Key Test For Tech's Future</h1>
Semiconductors, once at the heart of tech's dominance, have been particularly sluggish. The Philadelphia Semiconductor Index (SOX) has faced stiff resistance at the 5397 July peak and the 5537 78.6% retracement level.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png" alt="" class="wp-image-643479" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
While it has managed to hold above the 4997 200-day moving average, Hunter is closely watching whether these resistance levels will break.
If the semiconductor sector can't clear this hurdle, it would signal a continuation of the underperformance that has characterized the group since mid-summer. 
On the other hand, if bullish momentum drags semiconductors through these barriers, it could fuel a catch-up rally in tech stocks, reversing the trend of broad market leadership shifting to other sectors.
Investors in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the Direxion Daily Semiconductor Bull 3x Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) should remain wary of their holdings.
<h1 class="wp-block-heading">Will Tech Stage A Comeback?</h1>
Despite these challenges, Hunter remains optimistic that the post-election bullish momentum could eventually carry tech stocks, particularly semiconductors, back into the leadership role they held for much of the 2022-2024 rally. 
But if semiconductors continue to falter, and the broader market continues to rally without them, it could confirm that the days of tech dominance are coming to an end — at least for the near term.
For now, Hunter is watching for any breakouts in the tech sector, especially in semiconductors, to see if they can reclaim their former leadership position. 
The key levels to watch are the 5397 July gap for the SOX Index and the 21433-22306 range for the NASDAQ 100.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41911474/russell-2000-rallies-jpmorgan-analyst-says-small-cap-may-outperform-mega-cap-peers">Russell 2000 Rallies, JPMorgan Analyst Says Small Cap May Outperform Mega-Cap Peers</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

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iShares Dow Jones US Telecommunications Sector Index Fund

QQQM

NASDAQ 100 Struggles To Close Gap With S&P 500 During Semiconductor Slowdown

Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) is set to report third-quarter 2024 earnings on Tuesday, Oct. 29, after the market close. 
The third-largest U.S. semiconductor company by market capitalization—behind Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)—has significantly lagged behind its industry <a href="https://www.benzinga.com/topic/semiconductors">peers year to date. </a>
Will AMD&#8217;s third-quarter earnings signal an inflection point, setting the stage for a comeback, or will the performance gap with top competitors continue to widen from here?
Chart: AMD Has Sharply Underperformed Nvidia Year To Date
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1024x503.png" alt="" class="wp-image-617297" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Wall Street Expectations For AMD Earnings, Revenue In Q3 2024</h3>
Wall Street anticipates AMD to report adjusted earnings per share (EPS) of 92 cents for the third quarter of 2024, reflecting a robust 31% increase from 70 cents in the same quarter last year, as per Benzinga Pro data.
GAAP revenue is projected to reach $6.71 billion, a 16% year-over-year increase from $5.8 billion in the third quarter of 2023.
<h3 class="wp-block-heading">A Positive Track Records Of Earnings Beats, Yet With Mixed Stock Reactions </h3>
Over the last eight quarters, AMD has consistently, yet marginally, beaten EPS expectations in seven out of eight reports, with the only miss occurring in the third quarter of 2022 (-1.47%).
Revenue has also largely exceeded expectations, with positive surprises in seven quarters, the largest being a 7.31% beat in Q1 2024. 
However, the stock's one-day price reaction has been mixed, demonstrating significant volatility. 
While strong quarterly beats drove substantial gains in the third quarter of 2023 (+9.69%) and the fourth quarter of 2022 (+12.63%), other quarters saw sharp declines despite solid results, such as the first quarter of 2024, where the stock dropped 8.91% following both a strong EPS beat of 8.77% and a 7.31% revenue surprise.
Strong positive stock reactions occurred in the third quarter of 2023 (+9.69%) and the fourth quarter of 2022 (+12.63%).
Negative reactions were recorded in the first quarter 2024 (-8.91%) and the first quarter of 2023 (-9.22%), despite substantial EPS and revenue beats, suggesting investor concerns about guidance-related issues
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<th>Quarter</th>
<th>Reported Adj. EPS</th>
<th>EPS Surprise</th>
<th>Revenue</th>
<th>Revenue Surprise</th>
<th>1-Day $AMD Reaction</th>
</tr>
<tr>
<td>Q2 2024</td>
<td>0.69</td>
<td>1.47%</td>
<td>5.835B</td>
<td>1.94%</td>
<td>4.36%</td>
</tr>
<tr>
<td>Q1 2024</td>
<td>0.62</td>
<td>8.77%</td>
<td>5.473B</td>
<td>7.31%</td>
<td>-8.91%</td>
</tr>
<tr>
<td>Q4 2023</td>
<td>0.77</td>
<td>In line</td>
<td>6.168B</td>
<td>0.78%</td>
<td>-2.54%</td>
</tr>
<tr>
<td>Q3 2023</td>
<td>0.70</td>
<td>2.94%</td>
<td>5.8B</td>
<td>1.93%</td>
<td>9.69%</td>
</tr>
<tr>
<td>Q2 2023</td>
<td>0.58</td>
<td>1.75%</td>
<td>5.359B</td>
<td>0.92%</td>
<td>-7.02%</td>
</tr>
<tr>
<td>Q1 2023</td>
<td>0.60</td>
<td>7.14%</td>
<td>5.353B</td>
<td>1%</td>
<td>-9.22%</td>
</tr>
<tr>
<td>Q4 2022</td>
<td>0.69</td>
<td>2.99%</td>
<td>5.599B</td>
<td>1.80%</td>
<td>12.63%</td>
</tr>
<tr>
<td>Q3 2022</td>
<td>0.67</td>
<td>-1.47%</td>
<td>5.565B</td>
<td>-0.98%</td>
<td>-1.73%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Benzinga Pro</figcaption></figure>
<h3 class="wp-block-heading">Rosenblatt Securities: 60% Upside Potential With Server And GPU Gains</h3>
Rosenblatt analyst Hans Mosesmann is optimistic about AMD's ability to meet and slightly exceed the Street&#8217;s expectations.
Mosesmann indicated that AMD's EPYC server CPUs and MI300 AI GPUs are on a positive trajectory, particularly in light of expanding market share in the high-performance computing space. However, he expects "slight growth" in embedded segments and double-digit declines in gaming consoles, which could act as a drag on AMD's overall performance.
"We believe the shares are set to outperform the group after several quarters of skepticism around MI300's market share potential and mixed quarter results," Mosesmann said. 
Rosenblatt maintains a bullish 12-month price target of $250, implying a potential 60% upside from current levels.
<h3 class="wp-block-heading">Goldman Sachs: Long-Term Optimism on AI Infrastructure and Server CPU Share</h3>
Goldman Sachs analyst Toshiya Hari indicated that AMD has underperformed due to downward revisions in consensus EPS estimates for 2024, which have dropped 9% since the beginning of the year, while competitors like NVIDIA have seen significant upward EPS revisions.
"We maintain our Buy rating on AMD given our expectation for sustained growth in AI infrastructure capex, a cyclical recovery in server CPUs, and continued market share gains in Enterprise," Hari said. 
He highlighted AMD's increasing x86 server CPU market share, which rose to 34% as of Q2 2024, from less than 20% in early 2022. 
Goldman Sachs estimates that AMD's upcoming next-generation server CPUs could further solidify its edge over Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) in total cost of ownership (TCO) and efficiency.
<h3 class="wp-block-heading">ETFs With Significant AMD Exposure</h3>
Investors looking for indirect exposure to AMD's performance may consider ETFs heavily weighted in AMD. 
Below are the top 10 ETFs with the largest allocations in AMD shares:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Holding $AMD</th>
<th>Weight in AMD (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Simplify Volt RoboCar Disruption and Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>)</td>
<td>9.80%</td>
</tr>
<tr>
<td>AOT Growth and Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AOTG#NYSE">AOTG</a>)</td>
<td>8.50%</td>
</tr>
<tr>
<td>Strive U.S. Semiconductor ETF (ARCA SHOC)</td>
<td>8.39%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>8.38%</td>
</tr>
<tr>
<td>Invesco PHLX Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NYSE">SOXQ</a>)</td>
<td>8.27%</td>
</tr>
<tr>
<td>VanEck Video Gaming and Esports ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NYSE">ESPO</a>)</td>
<td>7.86%</td>
</tr>
<tr>
<td>Invesco AI and Next Gen ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGPT#NYSE">IGPT</a>)</td>
<td>7.79%</td>
</tr>
<tr>
<td>Spear Alpha ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPRX#NYSE">SPRX</a>)</td>
<td>7.48%</td>
</tr>
<tr>
<td>REX FANG &amp; Innovation Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NYSE">FEPI</a>)</td>
<td>6.47%</td>
</tr>
<tr>
<td>Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>)</td>
<td>5.92%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41573947/on-semiconductor-q3-earnings-revenue-and-eps-beat-amid-19-topline-drop-and-margin-pressure-eyes-gro">ON Semiconductor Q3 Earnings: Revenue And EPS Beat Amid 19% Topline Drop and Margin Pressure, Eyes Growth in Automotive &amp; AI Markets</a></li>
</ul>
Photo: Shutterstock

Earnings

Gaming

Large Cap

AOTG

AVGO

ESPO

FEPI

IGPT

SOXQ

SPRX

AMD Q3 Earnings Preview: Can AI, Server Gains Help Narrow The Semiconductor Gap With Nvidia?

As Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) hit all-time highs with 234.09% returns in the past year, several exchange-traded funds (ETFs) associated with the Jensen Huang-led chip giant have also demonstrated remarkable growth during the same time frame, reflecting the company&#8217;s significant market influence.
What Happened: According to <a href="https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/holdings/">Benzinga Pro</a>, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) being entirely invested in Nvidia, saw a remarkable increase of 479.94%.
Meanwhile, ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which has a 53.92% stake in Nvidia, climbed by 290.18%.
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) with an 8.15% holding in Nvidia surged by 111.65%, while the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose by 50.49%, holding 9.69% in Nvidia. The Strive US Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>) which maintains a 26.04% Nvidia holding, increased by 51.19%.
See Also: <a href="https://www.benzinga.com/general/entertainment/24/10/41348553/jay-z-praised-by-warren-buffett-as-the-guy-to-learn-from-once-said-he-wasnt-taught-emotiona?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Jay-Z, Praised by Warren Buffett as &#8216;The Guy to Learn From,&#8217; Once Said He Wasn&#8217;t Taught Emotional Intelligence, But How To Survive — The Rap Legend&#8217;s Growth Has Made Him Not Just A Better Person, But Also Worth $2.5B Today</a>
The Simplify Volt RoboCar Disruption (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>) gained 34.66%, with 22.83% invested in Nvidia. Lastly, the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) rose by 76.50%, holding 22.69% in Nvidia.
Why It Matters: The impressive performance of Nvidia-linked ETFs can be attributed to the company&#8217;s strong market position and the increasing demand for its products. Recently, <a href="https://www.benzinga.com/news/24/10/41437976/nvidia-stock-hits-all-time-high-ahead-of-big-tech-earnings-whats-going-on">Nvidia&#8217;s stock reached an all-time high</a>, driven by the surge in artificial intelligence demand. Since the beginning of the year, Nvidia shares have risen over 186%, showcasing the company&#8217;s significant growth trajectory.
Furthermore, <a href="https://www.benzinga.com/government/24/10/41462536/nvidia-accelerates-global-growth-eyes-ai-chip-development-in-india-and-expansion-in-thailand">Nvidia is expanding globally</a>, with plans to develop AI chips in India and expand in Thailand. This strategic expansion aims to bolster domestic semiconductor supply chains, further solidifying Nvidia&#8217;s market dominance.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41420178/bitcoin-ethereum-dogecoin-on-the-rise-as-uptober-may-be-finally-here-analysts-predict-bull?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin On The Rise As &#8216;Uptober&#8217; May Be Finally Here: Analysts Predict Bullish Breakout For King Crypto, ETH&#8217;s Rally To $3,300</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

While Nvidia Shares Are Hitting All-Time High With Over 230% Return In The Past Year, Some ETFs Linked To Jensen Huang's Chip Giant Have Surged By Almost 500%: Here's More

On Friday, Gene Munster shared his insights on the ongoing AI market dynamics after key Nvidia supplier Taiwan Semiconductor Manufacturing Company Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) reported <a href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips">impressive third-quarter performance</a>.
What Happened: Munster took to X and emphasized the importance of focusing on the broader AI landscape rather than short-term fluctuations. He pointed out that just two days prior, concerns arose among investors regarding a potential slowdown in the AI sector. This was sparked by ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) reducing its 2025 revenue forecast by approximately 18%. The prevailing theory suggested that a decline in demand for AI chip-making machines could indicate a slowdown in AI chip demand.
See Also: <a href="https://www.benzinga.com/news/24/09/40974511/iphone-15-pro-models-and-iphone-13-discontinued-by-apple-heres-why?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">iPhone 15 Pro Models and iPhone 13 Discontinued By Apple: Here&#8217;s Why</a>
However that was not the case. Munster highlighted that TSMC saw a 10% surge in its stock price after announcing a 6% increase in December revenue projections. TSMC also reported that its demand for CoWoS, a key AI technology, is outpacing its supply capabilities, despite efforts to double capacity annually. 
Munster stated, &#8220;I still believe we&#8217;re in front of a 2-4 year bull market driven by AI.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Today&#39;s another case study on why it&#39;s important to stay focused on the big AI picture versus the day-to-day noise. Two days ago, investors were concerned that the AI trade was starting to slow, based on <a href="https://twitter.com/search?q=%24ASML&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ASML</a> guiding 2025 revenue down by about 18%. The theory was that if the…
&mdash; Gene Munster (@munster_gene) <a href="https://twitter.com/munster_gene/status/1847010578017190048?ref_src=twsrc%5Etfw">October 17, 2024</a></blockquote>
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Why It Matters: Munster&#8217;s comments come in the wake of TSMC&#8217;s impressive third-quarter results, which exceeded expectations due to robust demand for AI chips. TSMC&#8217;s revenue for the quarter reached NT$759.69 billion ($23.50 billion), marking a 39% year-over-year increase. This growth underscores the strong demand for advanced processor node technologies used in AI applications.
Additionally, Munster had previously addressed the market&#8217;s reaction to ASML&#8217;s guidance cut, describing it as an overreaction. As reported by <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41351475/after-asml-rocks-ai-hardware-names-gene-munster-explains-why-its-overreaction-ai-tr">Benzinga</a>, he noted that only a small portion of ASML&#8217;s revenue is directly tied to AI demand. Munster&#8217;s perspective suggests that the AI trade remains on track, with TSMC&#8217;s performance further supporting this outlook.
Price Action: As per<a href="https://pro.benzinga.com"> Benzinga Pro,</a> t the time of writing during the pre-market hours on Friday, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up by 0.70% while major semiconductor ETFs were also trading slightly upwards. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up by 1% while Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) was trading 3.20% higher. SP Funds S&amp;P World ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPWO#NYSE">SPWO</a>) which allows investments into TSM, was up by 1.54%.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41356479/apple-spark-hope-for-americas-semiconductor-comeback-key-supplier-tsmc-reportedly-begins-producing-c?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Spark Hope For America&#8217;s Semiconductor Comeback: Key Supplier TSMC Reportedly Begins Producing Chip</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

SPWO

Gene Munster Predicts 'Bull Market Driven By AI' Amid TSMC's Stellar Performance

STOCK ROSE TO HIGH ONLY MINUTES AFTER SIGNAL
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="869" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/16203552/Screen-Shot-2024-10-16-at-3.34.38-PM-1024x869.png" alt="" class="wp-image-2451" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/16203552/Screen-Shot-2024-10-16-at-3.34.38-PM-1024x869.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/16203552/Screen-Shot-2024-10-16-at-3.34.38-PM-300x255.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/16203552/Screen-Shot-2024-10-16-at-3.34.38-PM-768x652.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/16203552/Screen-Shot-2024-10-16-at-3.34.38-PM.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Yesterday, at 10:05 AM on October 16th, a significant trading signal occurred for Drexion Daily Semiconductor Bull 3X shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) as it demonstrated a Power Inflow at a price of $34.40. This indicator is crucial for traders who want to know directionally where institutions and so-called "smart money" moves in the market. They see the value of utilizing order flow analytics to guide their trading decisions. The Power Inflow points to a possible uptrend in SOXL&#8217;s stock, marking a potential entry point for traders looking to capitalize on the expected upward movement. Traders with this signal closely watch for sustained momentum in SOXL&#8217;s stock price, interpreting this event as a bullish sign.
Signal description
Order flow analytics, aka transaction or market flow analysis, separate and study both the retail and institutional volume rate of orders (flow). It involves analyzing the flow of buy and sell orders, along with size, timing, and other associated characteristics and patterns, to gain insights and make more informed trading decisions. This particular indicator is interpreted as a bullish signal by active traders.&nbsp;
The Power Inflow occurs within the first two hours of the market open and generally signals the trend that helps gauge the stock&#8217;s overall direction, powered by institutional activity in the stock, for the remainder of the day.&nbsp;
By incorporating order flow analytics into their trading strategies, market participants can better interpret market conditions, identify trading opportunities, and potentially improve their trading performance. But let's not forget that while watching smart money flow can provide valuable insights, it is crucial to incorporate effective risk management strategies to protect capital and mitigate potential losses. Employing a consistent and effective risk management plan helps traders navigate the uncertainties of the market in a more controlled and calculated manner, increasing the likelihood of long-term success
If you want to stay updated on the latest options trades for SOXL, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.&nbsp;
<a href="https://benzinga.com/apis?_gl=1&#x2A;1hlgn5i&#x2A;_ga&#x2A;MTY1NjE2NTYxMi4xNzE0NzQ4MTAy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDc0ODEwMi4xLjEuMTcxNDc0ODQyOC4wLjAuMA..">Market News and Data brought to you by Benzinga APIs</a> and include firms, like <a href="https://finitusa.com/en/">Finit USA</a>, responsible for parts of the data within this article. 
&#xA9; 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved
After Market Close UPDATE:
The price at the time of the Power Inflow was $34.40. The returns on the High price ($35.53) and Close price ($34.37) after the Power Inflow were respectively 3.3% and -.02%. That is why it is important to have a trading plan that includes Profit Targets and Stop Losses that reflect your risk appetite. 
Past Performance is Not Indicative of Future Results

Signals

Tradepulse Power Inflow Alert: Direxion Daily Semiconductor Bull 3X Receives Alert And Climbs 3.3%

An<a href="https://www.benzinga.com/markets/equities/24/10/41339229/asml-earnings-leak-sparks-broad-semiconductor-sell-off-sector-down-sharply-as-dutch-chipmaker-lo"> unintentional disclosure</a> by semiconductor equipment specialist ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) penalized the broader technology sector, with the benchmark Nasdaq index losing 1% on Tuesday. Unfortunately, ASML accidentally released its third-quarter earnings report a day early, causing a ripple effect in the computer chip ecosystem.
As Benzinga Staff Writer Piero Cingari pointed out, the report "revealed a significant revision to its 2025 net sales guidance, now projected between 30 billion euros and 35 billion euros ($32.7 billion to $38.2 billion) — a reduction from the previously stated range of 30 billion euros to 40 billion euros."
Most worryingly, while demand related to artificial intelligence appears to continue to be largely in a bright spot, it wasn't enough to rejuvenate other market segments. "It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness," said ASML president and CEO Christophe Fouquet.
Adding insult to injury, the head executive disclosed that the company's 2025 total net sales may expand to a range between 30 billion to 35 billion euros, which represents the lower half of the guidance that the company provided at its Investor Day conference.
Not surprisingly, the options market lit up for ASML stock, with the market's heavy hitters<a href="https://www.benzinga.com/insights/options/24/10/41339957/market-whales-and-their-recent-bets-on-asml-options"> positioning themselves bearishly</a>. Specifically, professional or institutional investors piled into put options with expiration dates ranging from this Friday to March 21 of next year.
The Direxion ETFs: Nevertheless, the heightened activity in the tech space could offer opportunities in Direxion's leveraged exchange-traded funds. Some of the financial service provider's highest-risk, highest-reward offerings took center stage recently. First, the Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) is an ETF that is reserved only for the most optimistic traders.
Second, the Direxion Daily Semiconductor Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) is an extreme ETF that caters to those holding decisively pessimistic sentiments. Both the SOXL and SOXS seek the daily investment results of 300% (or 300% of the inverse) of the NYSE Semiconductor Index. Given the 3X leverage, these funds are only designed to be held for periods no greater than one day.
Fundamentally, the daily compounding of leverage – especially for the inverse SOXS – is severe in these ETFs. Therefore, it's imperative that market participants maintain positional discipline and exit before the trading session expires.
The SOXL ETF: Although the SOXL fund is in positive territory for this year, the extreme leverage has only resulted in a relatively modest performance.
<ul>
<li>After soaring through early July, the 3X-leveraged ETF tumbled badly into early August before entering a choppy consolidation phase.</li>
<li>SOXL is on the ropes at the moment as the shocking ASML disclosure plunged its unit price below its 50-day moving average.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcDg3gZRbsYBXGyC9ebAaHbyBmm3YxDtIExF7-52uSNnlV5n7ttS3rZzjpAmFVC1fOn_yC3_TkH-qICphGvPTrB04YayTwGe9zrwAiXYk9FfXLRkxwAwZX6_QwWY99nWsgVuBG29e03786l8bWaMkPq1q-r?key=YsYI2ypHuca7szZI3JwmPg" alt="" /></figure>
The SOXS ETF: Due to the overall strong performance of the tech space, SOXS has been bleeding red ink, losing over 63% since the start of this year.
<ul>
<li>The overall posture of SOXS is discouraging right now since it can't seem to break the trend of lower lows.</li>
<li>However, Tuesday's accidental disclosure yielded an almost 18% lift in the 3X bear fund, providing much-needed optimism.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfO7idp6c-deCBWIGE-Y4k3JU7Cn0FEPp4BI6O7pfhKiXnZG3kHQA0M-j6c71boRzco-QnDKhBY5A6x6IYX9J5asz9xjnG3zwW1HeU2VHbvRtEV2JTdZWU5GgwwsGPlNqyOknSBZ9kWbq7mvQSIu_g_6wgw?key=YsYI2ypHuca7szZI3JwmPg" alt="" /></figure>
Featured photo by <a href="https://pixabay.com/users/colibrie-15745216/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=8911821">Temel</a> on <a href="https://pixabay.com//?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=8911821">Pixabay</a>.

Long Ideas

Short Ideas

Direxion Daily Semiconductor Bear 3X Shares

SOXS

Tech Sector Chaos Puts Spotlight On Direxion's 3X-Leveraged SOXL And SOXS Funds

Driven by demand from cloud computing and AI, semiconductor sales have skyrocketed in recent months as pressure due to supply chain concerns and inflation has eased. The specialized chips that power these popular technologies are in such high demand that makers of these products now represent three of the 10 largest companies in the world by market capitalization&mdash;NVIDIA Corp., Taiwan Semiconductor Manufacturing Co. Ltd., and Broadcom Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avgo#NASDAQ">AVGO</a>), each of which has a market cap of at least $833 billion.
Notably, the semiconductor market appears to be still heating up. Global semiconductor sales for August 2024 reached more than $53 billion, a 20.6% increase year-over-year and the fifth consecutive month-to-month improvement. Demand was particularly strong in the U.S. and Asia. China&#39;s assertive stimulus policy has prompted a surge in domestic chipmaker stocks in recent weeks, which is not reflected in August&#39;s global sales figures.
Bets on individual semiconductor makers have been a popular choice for many investors, with NVDA shares nearly tripling in the last year and both TSM and AVGO stocks more than doubling during that time. Some investors may prefer a broader approach, though, to capitalize on the ongoing surge in the U.S. or the global semiconductor spaces. In these cases, there are a number of ETFs providing different types of exposure to this market.
<h2>SMH: Top-Performing Non-Leveraged Chip ETF</h2>
The VanEck Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>) provides reasonably broad coverage of the semiconductor space by targeting more than two dozen U.S.-listed chipmakers. Setting it apart from other U.S.-focused semiconductor funds is SMH&#39;s inclusion of chip manufacturers of different market capitalization levels, allowing for exposure beyond the largest companies.
SMH has outperformed all other non-leveraged semiconductor ETFs year-to-date, with a total return of nearly 42% in that time and a one-year increase of more than 68%. In the competitive ETF space, where fees for funds are often driven lower, SMH has a moderate expense ratio of 0.35%. This is in line with several other ETFs with a similar focus. VanEck&#39;s semiconductor fund also has a healthy asset base of more than $24 billion and strong liquidity based on average trading volumes.
<h2>SOXQ: Low Fee Alternative</h2>
The Invesco PHLX Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/soxq#NASDAQ">SOXQ</a>) is just a few years old, making it one of the newest semiconductor-focused funds available. It focuses on a pool of about 30 U.S.-listed and large-cap semiconductor companies, with major players like NVIDIA and Broadcom representing outsized portions of the portfolio.
SOXQ sets itself apart by its expense ratio of just 0.19%. The fund has undercut many other established semiconductor ETFs, drawing cost-conscious investors and those interested in buying and holding.
Given its smaller assets under management and lower liquidity levels than better-known rivals, a buy-and-hold strategy may also be best for SOXQ.
<h2>SEMI: Global Exposure</h2>
While many semiconductor ETFs focus on a small pool of U.S. companies, the Columbia Seligman Semiconductor &amp; Technology ETF (ARCA:SEMI) provides global exposure.
Although its portfolio remains relatively small, at about 30 holdings, and major players like NVIDIA still dominate, SEMI is nonetheless one of the most diverse semiconductor funds available.
This diversity gives investors access to a broader range of growth opportunities. By including international companies, SEMI stands out from other funds with a more limited geographic focus.
<h2>SOXL: Leveraged Semiconductor Fund</h2>
Investors looking to take a more active approach to trading may wish to make use of leveraged funds. In this area, the Direxion Daily Semiconductor Bull 3X Shares ETF (ARCA:SOXL) stands out for its 3x-long exposure to a pool of top U.S. semiconductor companies. SOXL dominates the leveraged semiconductor ETF space in terms of liquidity, which is key for investors because the fund&#39;s leverage resets daily.
This daily reset means traders must be cautious of volatility over multiple days, as the compounding effect can significantly impact overall returns. For this reason, SOXL is generally best suited for short-term trades rather than long-term holds, allowing investors to take advantage of sharp price movements in semiconductor stocks without holding the risks of daily compounding over an extended period.
<h2>Rotation Back Into Semiconductor Stocks?</h2>
Some investors shifted away from semiconductors ahead of the Fed&#39;s September rate cut. SMH and other semiconductor funds tumbled in July as a result. However, in the final quarter of the year it appears that semiconductor firms are back on track for continued gains, although the industry remains heavily dependent on a small number of very large names. ETFs focused in this space can help to mitigate the risk of individual chipmakers while still providing exposure to the industry as it continues to heat up.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/4-best-etfs-for-capitalizing-on-the-semiconductor-market-surge/">4 Best ETFs for Capitalizing on the Semiconductor Market Surge</a>&quot; first appeared on MarketBeat.

SEMI

4 Best ETFs for Capitalizing on the Semiconductor Market Surge

Direxion Managing Director Ed Egilinsky spoke to Benzinga about the sectors likely to benefit from the Federal Reserve&#8217;s potential rate cuts as well as the <a href="https://www.benzinga.com/topic/2024-presidential-election">2024 presidential election</a>.
&#8220;In the current rotation trade environment, there are several sectors that could be impacted such as the Financials, Energy, Tech, and Healthcare/Biotech,&#8221; Egilinsky said. 
<h3 class="wp-block-heading">Semiconductors &#8211; Driving The Tech Sector</h3>
Egilinsky emphasized the significant role of semiconductors in the tech sector's recent success. 
&#8220;The tech sector has continued to be a leader in 2024, with semiconductors once again outpacing the broader tech space,&#8221; he said. This trend is partly due to the excitement surrounding AI.
For traders looking to leverage this momentum, Egilinsky said, &#8220;We have seen inflows YTD with both our Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>), as traders contemplate the next directional move.&#8221; 
These ETFs are designed to capture short-term fluctuations in the semiconductor sector, offering investors tools to capitalize on its ongoing growth.
<h3 class="wp-block-heading">Sector Sensitivity Amid Political, Economic Shifts</h3>
With Election Day on Nov. 5, Egilinsky highlighted how policy changes could affect various sectors in 2025.
&#8220;The election outcome could have a major impact on policy and should create directional volatility in areas sensitive to policy shifts such as healthcare/biotech, financials, and energy,&#8221; he explained. 
Leveraged and inverse ETFs are poised to see increased activity depending on these policy changes:
<ul>
<li>Direxion Daily S&amp;P Biotech Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABU#NYSE">LABU</a>) and Direxion Daily S&amp;P Biotech Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABD#NYSE">LABD</a>),</li>
<li>Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) and Direxion Daily Energy Bear 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERY#NYSE">ERY</a>)</li>
<li>Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) and Direxion Financial Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAZ#NYSE">FAZ</a>) </li>
</ul>
Read Also: <a href="EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company">EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company</a>
<h3 class="wp-block-heading">Diversifying Beyond The Magnificent Seven</h3>
Egilinsky also discussed the challenge of diversifying beyond the top-performing Magnificent Seven stocks: Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
&#8220;We see many investors looking to diversify beyond the Magnificent Seven stocks,&#8221; he said. For those seeking broader exposure, the Direxion NASDAQ-100 Equal Weighted Index Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQE#NASDAQ">QQQE</a>) offers an equal weight approach to the NASDAQ 100 Index, potentially providing additional sources of returns.
<h3 class="wp-block-heading">Real Estate, Utilities: Benefiting From Rate Cut Expectations</h3>
Egilinsky also noted the performance of real estate and utilities in light of anticipated rate cuts. 
&#8220;The Real Estate and Utilities markets recently hit two-year highs as the realization that the Fed will start cutting interest rates has helped both sectors be amongst the best-performing sectors thus far this quarter,&#8221; he said.
For investors looking to ride this momentum, ETFs like the Direxion Daily Utilities Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UTSL#NYSE">UTSL</a>) and Direxion Daily Real Estate Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRN#NYSE">DRN</a>) are worth considering.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/08/40635736/how-americas-home-market-could-change-for-the-better-if-more-buyers-followed-charlie-mungers-lead">How America&#8217;s Home Market Could Change For The Better If More Buyers Followed Charlie Munger&#8217;s Lead</a></li>
</ul>
Image: Shutterstock

Exclusives

Interview

AMZN

Direxion Daily Real Estate Bull 3x Shares

GOOG

GOOGL

LABD

LABU

MSFT

QQQE

TSLA

UTSL

EXCLUSIVE: Beyond The Magnificent Seven — Direxion's Egilinsky Reveals Top Sector Picks

The Netherlands' recently elected prime minister is expected to block ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) <a href="https://www.benzinga.com//node/40301217">from assisting Chinese companies with repair and maintenance services</a>.
Dutch company ASML is a top player in the <a href="https://www.benzinga.com/topic/semiconductors">semiconductor</a> industry, and the only supplier of extreme ultraviolet lithography machines, which are required to manufacture the world's most powerful chips.
The move is expected to vastly affect China's ability to produce advanced semiconductors and could also hurt ASML's business, as it would deter Chinese companies from purchasing new ASML machines.
ASML stock traded higher earlier in the day Thursday, potentially in sympathy with NVIDIA Corp&#8216;s <a href="https://www.benzinga.com/markets/asia/24/05/38800273/chinas-semiconductor-spending-tops-us-with-142b-commitment-global-chip-race-heats-up">quarterly results</a>, which broadly <a href="https://www.benzinga.com/news/earnings/24/08/40630439/semiconductor-etfs-rally-despite-nvidia-dip-10-chipmakers-defy-the-ai-darlings-drop">boosted the chips and AI sectors</a>. ASML stock ultimately ended the session slightly negative at $887.71. 
What Happened: The government of Dick Schoof, who came into power in The Netherlands in July, will apparently not renew ASML's licenses to repair and maintain their products in China. This includes providing spare parts as well as having ASML employees stationed at Chinese companies, <a href="https://www.bloomberg.com/news/articles/2024-08-29/the-netherlands-to-put-more-curbs-on-asml-s-china-chip-business?srnd=homepage-europe&amp;sref=TBDibEcD">Bloomberg</a> reported. 
Semiconductor production lines are extremely complex and require fixed personnel to provide maintenance service. ASML has 10,000 customer support employees on staff, including service engineers and applications specialists, some of whom are permanently placed at foreign manufacturing companies.
So far, Chinese companies have not been able to purchase extreme ultraviolet lithography machines from ASML. The new rule would involve the servicing of ASML's deep ultraviolet lithography, which are second-in-line in the company's product roster and are held by Chinese tech companies like Huawei.
The latest EUV machine from ASML runs about $380 million, and the company <a href="https://www.benzinga.com/news/24/05/38842448/taiwan-semi-flags-high-costs-of-asmls-latest-chip-machines">has sold it to </a>Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and <a href="https://www.benzinga.com/news/24/02/37071728/intel-gears-up-for-future-with-asmls-advanced-chip-machine-set-to-advance-ai-processing">Intel Corp</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), among others.
Read also: <a href="https://www.benzinga.com/news/earnings/24/08/40630439/semiconductor-etfs-rally-despite-nvidia-dip-10-chipmakers-defy-the-ai-darlings-drop">Semiconductor ETFs Rally Despite Nvidia Dip: 10 Chipmakers Defy The AI Darling&#8217;s Drop</a>
Impact On ASML: China remains ASML's largest market, and has been so for the last four consecutive quarters, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-07-17/asml-s-surging-china-sales-underscore-us-threat-of-tighter-curbs?sref=TBDibEcD">reports</a>. Exports to the country represented <a href="https://www.benzinga.com/news/earnings/24/07/39808860/asml-beats-q2-earnings-expectations-with-strong-china-sales-ai-chip-demand">49% of the company's sales in the second quarter</a> of this year.
While the company's exclusive product offer has allowed it to remain present in China's market despite export controls, new restrictions will further incentivize China to develop the technology it needs to manufacture advanced chips with fully local technology.
Chinese tech giant Huawei recently announced its latest chip series are in line <a href="https://www.benzinga.com/government/24/06/39227871/nvidias-ai-chip-has-a-tough-competitor-from-china-huaweis-latest-ascend-910b">with Nvidia's high-level A100 chips in some tests</a>.
US Pressure Abroad Is Working: China is already under intense pressure from the U.S. to slow down its semiconductor industry. The Biden administration has released a battery of measures aimed at hampering China's growth in the sector and boosting the U.S. domestic industry.
The moves have been framed within the context of national security, as semiconductors are key parts in advanced military equipment and in the development of high-end artificial intelligence, among other applications that could influence the geopolitical power balance.
In 2022, <a href="https://www.benzinga.com/government/22/10/29273679/chinas-semiconductor-industry-decapitated-overnight-what-annihilation-looks-like-1">Biden threatened to revoke citizen privileges to U.S. persons</a> working with Chinese semiconductor companies, causing an exodus of American tech workers from the Asian nation.
Just last month, the government enacted an executive order <a href="https://www.benzinga.com/government/23/08/33683351/biden-targets-chinas-semiconductors-and-ai-with-new-order-restricting-investments">restricting U.S. investment in Chinese high-tech sectors</a> including semiconductors.
The moves are in line with other measures aimed at boosting the American domestic chip industry, <a href="https://www.benzinga.com/government/24/07/39592660/biden-administration-pumps-504m-to-boost-ai-chip-innovation-in-tech-hubs">including tax breaks and billion-dollar funding packages</a>.
Recently, the Biden administration issued a new rule expanding U.S. powers to bar tech exports into China from countries such as Japan, the Netherlands and South Korea <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40078235/biden-rule-on-semiconductor-exports-to-china-is-huge-positive-for-chip-sector-suppl">when U.S. technology is involved</a>.
The U.S. used this rule to influence Schoof's upcoming decision, Bloomberg reported, as the Biden administration pushes to steer its allies against Chinese technological growth.
A spokesperson from China's Ministry of Commerce said this week that <a href="https://www.benzinga.com/news/24/08/40546725/china-slams-us-for-including-chinese-firms-in-export-control-list-undermines-the-international-trade">U.S. actions undermine "international trade order and rules"</a> and disrupt the "security and stability of global industrial and supply chains."
While the Chinese government <a href="https://www.benzinga.com/markets/asia/24/05/38800273/chinas-semiconductor-spending-tops-us-with-142b-commitment-global-chip-race-heats-up">has invested more than the U.S.</a> in boosting its domestic semiconductor industry, the country still lags behind in developing its own technology to become independent from foreign suppliers, many of whom are based in countries that align with U.S. political interests.
The largest semiconductor ETFs can be affected by geopolitical moves. These include VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>).
Now read:
<ul>
<li><a href="https://www.benzinga.com/government/24/08/40622630/us-embargo-fuels-chinas-6b-plus-data-center-investment-report">US Embargo Fuels China&#8217;s $6B Plus Data Center Investment: Report</a></li>
</ul>
Photo via Shutterstock.

ASML's China Business In Crosshairs Of Dutch Government: Semiconductors At Center Of East-West Tensions

In the wake of Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recent earnings announcement, exchange-traded funds (ETFs) associated with the company have shown diverse responses.
What Happened: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, after the earnings report, GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) saw a decrease of 3.41% in pre-market trading. Concurrently, T-Rex 2X Inverse NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDQ#BATS">NVDQ</a>) experienced a rise of 3.48%.
Other ETFs like ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Direxion Daily NVDA Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDU#NASDAQ">NVDU</a>) also witnessed a decline of 1.90% and 3.48% respectively. On the contrary, Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) saw an increase of 1.09% and 0.57% respectively.
The varied responses from NVDA ETFs came in the aftermath of Nvidia&#8217;s latest quarterly earnings report.
See Also: <a href="https://www.benzinga.com/markets/cannabis/24/08/40590258/gop-congress-member-nancy-mace-they-havent-done-anything-slams-dnc-cannabis-inaction-calls-out-r?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">GOP Congress Member Nancy Mace: &#8216;They Haven&#8217;t Done Anything,&#8217; Slams DNC Cannabis Inaction, Calls Out Republican Reluctance</a>
Why It Matters: Nvidia ETFs had shown mixed trading activity prior to the earnings announcement as well. The earnings report revealed that Nvidia had surpassed expectations for the <a href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal">second quarter driven</a> by strong data center revenue.
However, the Jensen Huang-led chip company&#8217;s gross margin had contracted from the first quarter, leading to a 3.6% drop in shares in after-hours trading. This could explain the varied responses among Nvidia ETFs following the earnings announcement.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40592599/nvidia-stock-poised-for-major-298b-market-jolt-as-q2-earnings-loom-says-goldman-sachs-can-you-im?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia Stock Poised For Major $298B Market Jolt As Q2 Earnings Loom, Says Goldman Sachs: &#8216;Can You Imagine&nbsp;If NVDA Beats Expectations?&#8217;</a></li>
</ul>
Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

NVDQ

NVDU

Nvidia ETFs Split In Pre-Market After Jensen Huang-Led Chip Giant Exceeds Q2 Expectations

ETFs that allow investing in Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are showing mixed reactions on Wednesday pre-market ahead of the Jensen Huang-led company&#8217;s earnings call.
What Happened: According to <a href="https://www.benzinga.com/top-stories/24/08/40534794/nvidia-is-next-weeks-top-stock-market-strategist-says-why-best-long-term-idea-is-just-buy-nvidia-and">Benzinga Pro</a>, at the time of writing, Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) was trading higher by 1.14%, while Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) was down by 0.85%.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) was trading 0.40% higher, and ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDX#BATS">NVDX</a>) also increased by 1.09%.
Meanwhile, GraniteShares 2x Short NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NASDAQ">NVD</a>) fell by 1.20%, whereas GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) gained 0.98%.
See Also: <a href="https://www.benzinga.com/markets/equities/24/08/40524790/amazon-ceo-andy-jassy-says-companys-ai-assistant-has-saved-260m-and-4-5k-developer-years-of-work?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon CEO Andy Jassy Says Company&#8217;s AI Assistant Has Saved $260M And 4.5K Developer-Years Of Work: &#8216;It&#8217;s Been A Game Changer For Us&#8217;</a>
Why It Matters: Investors are keenly observing Nvidia ahead of its earnings report, which is anticipated to significantly impact the market. A Morgan Stanley analyst expressed confidence in <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40570314/top-nvidia-analyst-sees-no-major-impact-from-blackwell-delay-but-flags-one-caveat-h">Nvidia&#8217;s ability to meet high expectations</a>, despite potential delays in Blackwell shipments. The analyst, Joseph Moore, maintained an Overweight rating and a $144 price target for Nvidia shares.
Moreover, Goldman Sachs highlighted the potential for a significant <a href="https://www.benzinga.com/markets/equities/24/08/40592599/nvidia-stock-poised-for-major-298b-market-jolt-as-q2-earnings-loom-says-goldman-sachs-can-you-im">market value fluctuation</a>, estimating a possible $298 billion swing following Nvidia&#8217;s second-quarter earnings report. This projection is based on options pricing data, which suggests a potential 9% move in Nvidia stock in either direction.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cannabis/24/08/40590258/gop-congress-member-nancy-mace-they-havent-done-anything-slams-dnc-cannabis-inaction-calls-out-r?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">GOP Congress Member Nancy Mace: &#8216;They Haven&#8217;t Done Anything,&#8217; Slams DNC Cannabis Inaction, Calls Out Republican Reluctance</a></li>
</ul>
Image via Unsplash
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Pre-Market Outlook

NVDL, SOXL And Other Chip-Stock Tracking ETFs Trade Mixed Ahead Of Nvidia Earnings: Here's Why

ETFs across various categories pulled in $4.4 billion in capital last week, pushing the year-to-date inflows to $532 billion. U.S. fixed-income ETFs led the way with $3.4 billion in inflows, followed by inflows of $2.4 billion in leveraged ETFs and $2.2 billion in U.S. equity ETFs.
Vanguard S&amp;P 500 ETF (ARCA:VOO), Direxion Daily Semiconductor Bull 3x Shares (ARCA:SOXL), SPDR Bloomberg 1-3 Month T-Bill ETF (ARCA:BIL), Invesco QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) and Schwab Intermediate-Term U.S. Treasury ETF (ARCA:SCHR) dominated the top creation list last week.
Wall Street witnessed a rollercoaster ride last week, dropping sharply and then climbing up. The S&amp;P 500 recouped all its losses to end the week after the Aug 5 steep sell-off prompted by fears of a recession following weak jobs data. The Dow Jones Industrial Index shed 0.6% and the tech-heavy Nasdaq Composite Index fell 0.2% last week.
The batch of early last week&#39;s data showed weakening labor markets and a slump in manufacturing that spurred recession concerns and battered global stock markets. Though these data signal a slowdown, the U.S. economy is far from recession anytime soon. The latest data shows that U.S. services sector activity rebounded from a four-year low in July amid a rise in orders and employment. The ISM survey&#39;s new orders measure rebounded to 52.4 from 47.3 in June, which was the lowest since December 2022.
Investors are betting that the Fed will respond to signs of weakness in the economy with more aggressive interest rate cuts. Per CME Group data, most investors expect larger cuts in the September meeting, with futures implying a 51% probability of a 50 bps cut and 49% odds of a 25 bps reduction. Lower interest rates generally lead to reduced borrowing costs, which help businesses expand their operations more easily, resulting in increased profitability. This, in turn, stimulates economic growth and provides a boost to the stock market.
We have detailed the ETFs below:
Vanguard S&amp;P 500 ETF
Vanguard S&amp;P 500 ETF topped the asset flow creation last week, gathering $3 billion in capital. It tracks the S&amp;P 500 Index and holds 504 stocks in its basket, each accounting for no more than 7.2% of the assets. Vanguard S&amp;P 500 ETF is heavy on the information technology sector, while financials and healthcare round off the next two spots with a double-digit allocation each.
Vanguard S&amp;P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4 million shares. It has AUM of $463.8 billion and a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Direxion Daily Semiconductor Bull 3x Shares
Direxion Daily Semiconductor Bull 3x Shares has gathered $1.7 billion in its asset base, propelling its AUM to $10.5 billion. It targets the semiconductor corner of the technology sector with three times leveraged exposure to the NYSE Semiconductor Index. Direxion Daily Semiconductor Bull 3x Shares charges 72 bps in fees per year and trades in an average daily volume of 67 million shares.
SPDR Bloomberg 1-3 Month T-Bill ETF
SPDR Bloomberg 1-3 Month T-Bill ETF saw an inflow of $1.6 billion last week. It seeks to provide exposure to zero-coupon U.S. Treasury securities with a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 24 securities in its basket. Both average maturity and adjusted duration are at 0.13 years each.
SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $34.4 billion and an average daily volume of 7 million shares. It charges 13 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Invesco QQQ Trust
Invesco QQQ Trust has accumulated $1.4 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ has a modest concentration on the top firms.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $271 billion and an average daily volume of 33 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Schwab Intermediate-Term U.S. Treasury ETF
Schwab Intermediate-Term U.S. Treasury ETF saw an inflow of $1.2 billion. It offers exposure to the intermediate-term U.S. Treasury bond market and follows the Bloomberg US Treasury 3-10 Year Index. It has an effective duration of 5.00 years and an average maturity of 5.60 years. With AUM of $9.7 billion, Schwab Intermediate-Term U.S. Treasury ETF trades in an average daily volume of 1.2 million and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2321389/5-hot-etfs-of-last-week?cid=CS-BENZ-FT-etf_news_and_commentary-2321389">To read this article on Zacks.com click here.</a>

Federal Reserve

SCHR

5 Hot ETFs of Last Week

Chip stocks-linked exchange-traded funds (ETFs) witnessed a substantial decline during <a href="https://www.benzinga.com/markets/equities/24/08/40156506/nvidia-plunges-nearly-10-to-sub-100-level-leading-other-semiconductor-stocks-lower-in-premarket-">Monday&#8217;s pre-market trading.</a>
What Happened: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) plummeted by 17.93%, while GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) dropped by 18.49%. ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) was trading lower by 16.72%.
Similarly, VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) also recorded losses, falling by 6.55% and 6.25% respectively.
Why It Matters: This significant drop in semiconductor ETFs is part of a larger global market &#8220;bloodbath.&#8221; On Friday, the U.S. <a href="https://www.benzinga.com/markets/asia/24/08/40156460/bloodbath-in-asia-and-europe-japans-index-crashes-13-gold-near-record-highs-global-markets-update-wh">stock markets closed</a> lower due to a disappointing jobs report, which sparked recession fears and led to a shift in investor sentiment. 
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40152445/trumps-bold-plan-to-use-bitcoin-to-wipe-out-35t-us-debt-questioned-by-economist-justin-wol?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Bold Plan To Use Bitcoin To &#8216;Wipe Out&#8217; $35T US Debt Questioned By Economist Justin Wolfers: &#8216;That&#8217;s Not How Crypto Works&#8217;</a>
On Monday, Asian markets opened with Japan&#8217;s TOPIX index dropping over 6%, <a href="https://www.benzinga.com/markets/equities/24/08/40151907/global-sell-off-shows-no-sign-of-stopping-japanese-stocks-fall-sharply-nikkei-drops-over-5-dow-f">triggering circuit breakers </a>and halting trading. This was part of a broader impact felt across the Asia-Pacific region. The U.S. market also<a href="https://www.benzinga.com/markets/asia/24/08/40152994/as-global-markets-roil-strategist-soothes-nerves-some-normal-action-under-the-surface-as-tech-got-wa"> showed a negative performance</a> for the third straight session, with tech being the worst performer. 
The development also coincides with Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)<a href="https://www.benzinga.com/news/24/08/40152477/nvidia-upcoming-chip-launch-faces-delay-due-to-design-flaws-setback-expected-to-impact-meta-microsof"> facing delays in the production</a> of its upcoming AI chips due to design issues. This setback is expected to impact major clients including Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40152252/bitcoin-ethereum-dogecoin-mirror-stock-market-rout-major-coins-crash-as-recession-war-fear?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Mirror Stock Market Rout — Major Coins Crash As Recession, War Fears Grip Investors: Analyst Says Aug, Sept &#8216;Worst Months&#8217; for King Crypto But Oct Raises Hopes</a></li>
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Photo via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

NVDL, SOXL And Other Chip ETFs Suffer Major Blow In Premarket Amid Global Market 'Bloodbath'

The <a href="https://www.benzinga.com/markets/24/08/40142331/chip-stocks-staring-at-another-bloodbath-as-intel-tumbles-nvidia-dips-4-asml-crumbles-over-6-whats-a">tech space took a tumble</a> in the week ended Aug. 2, with the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) declining more than 5% and underperforming the S&amp;P 500 Index &#8211; a measure of broader market performance. Here&#8217;s a summary of what dragged the sector this week and a perspective on where these stocks are headed into the near- and medium-term.
Mixed Tech Earnings, Geopolitics Weigh: Tech stocks started the week on a cautious but a winning note as traders awaited earnings reports from a slew of mega-cap tech names. They pulled back notably on Tuesday, dragged by some tech earnings disappointments, and caution ahead of imminent catalysts.
Strong earnings report from Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) fueled a rebound by tech stocks on Wednesday but macro concerns reignited the selling pressure on Thursday. Separate reports on the manufacturing sector and the job market proved to be the undoing of the sector, with traders largely ignoring Meta Platform, Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) fairly robust earnings.
The selling pressure extended to Friday&#8217;s session as Intel Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) earnings miss and reports of a potential Federal Trade Commission probe into high-flying Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) sapped risk appetite of traders toward tech stocks.
Commenting on the week&#8217;s tech sell-off, Wedbush analyst Daniel Ives said, &#8220;The perfect storm panicked tech sell-off has now gained steam after the weaker jobs report&#8230;fueled the R word fears and worries the Fed is now too late in its cutting cycle with tech stocks in the center of this Category 5 storm sell- off.&#8221;
Here&#8217;s how the major tech stocks and exchange-traded funds fared in the week ended Aug. 2:
<ul>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): -9.84%</li>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>): -3.07%</li>
<li>Vanguard Information Technology Index Fund ETF Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>): -4.90%</li>
<li>Direxion Daily Semiconductor Bull 3X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>): -30.01%</li>
<li>T-Rex 2X Long NVIDIA Daily Target ETF (CBOE: NVDX): -12.21%</li>
<li>Nvidia: -5.12%</li>
<li>Intel: -31.48%</li>
<li>AMD: -5.35%</li>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>): -23.86% (the decline in part was due to quarterly earnings)</li>
<li>Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): +0.87%</li>
</ul>
The Nasdaq 100 Index, which tracks the performance of 100 biggest non-financial tech stocks, has entered the correction territory following the week&#8217;s sell-off. From a July 11&#8217;s intraday high of 18,671.07, the Nasdaq 100 has lost a little over 10%. A pullback of over 10% from a recent high is called a correction in stock market parlance. 
See Also: <a href="https://www.benzinga.com/money/best-tech-stocks">Best Tech Stocks Right Now</a>
What Lies Ahead? Ives says that this tech bull market and historic run for tech stocks isn&#8217;t over. &#8220;This is just a white knuckle moment in a multi-year bull run for tech stocks that need hand holding,&#8221; he said.
The analyst called for soft-landing and expects the Fed to kickstart a major cutting cycle the next 18 months. 
Ives&#8217; optimism on tech stocks is premised mainly on his confidence in the artificial intelligence technology.
&#8220;We strongly believe this is still the early innings of a $1 trillion AI Cap Ex cycle that will be a 4th Industrial Revolution fueling the broader tech sector for years to come with accelerated growth rates across the tech ecosystem,&#8221; he said.
&nbsp;This June quarter earnings season validated Wedbush&#8217;s bull thesis and field checks around the massive cloud buildouts, Ivs said. 
&#8220;While we clearly get the worries/fears the US consumer is weakening (Amazon consumer softer print), Fed is late to the game, hard landing/hello again bear thesis returning&#8230;we focus on tech spending and the winners that will be front and center in this massive AI tech buildout that is still in the 2nd inning of a 9 inning game,&#8221; he said.
The prospect of the Fed embarking on rate cuts, though negative for mega-caps, may prove healthy for SMID-cap tech stocks. Also, regulatory overhang is in the spotlight in the wake of the presidential election. A Republicans victory is seen by many as resulting in a far less stringent regulatory environment.
Palantir Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) , another AI-levered name, is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40129511/palantir-faces-critical-prove-me-moment-analyst-says-commercial-growth-will-be-star">on track to report earnings in the unfolding week, </a>potentially offering insights into the strength of the AI wave. On the economic front, things will likely be a little bit slow, with two service sector activity readings and jobless claims among the notable releases.
The QQQ ended Friday&#8217;s session down 2.37% at $448.75, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data</a>.
Read Next:<a href="https://www.benzinga.com/news/earnings/24/08/40116376/apple-q3-earnings-beat-expectations-tim-cook-highlights-breakthrough-ai-platform-installed-base-of-"> </a>
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40116376/apple-q3-earnings-beat-expectations-tim-cook-highlights-breakthrough-ai-platform-installed-base-of-">Apple Q3 Earnings Beat Expectations, Tim Cook Highlights &#8216;Breakthrough&#8217; AI Platform: Installed Base Of Devices Hits All-Time High, But China Revenue Falls&nbsp;</a></li>
</ul>

Tech Sell-Off Takes QQQ To Correction Territory, Nvidia Sheds Over 5% For Week: Analyst Says 'Just A White Knuckle Moment In A Multi-year Bull Run'

The tech stocks, which led the stock market rebound seen since in early 2023, have come under pressure since early July, with the weakness more concentrated in the semiconductor space. Early indications suggest <a href="https://www.benzinga.com/markets/equities/24/08/40124435/nvidia-down-nearly-4-in-pre-market-trading-as-doj-reportedly-launches-antitrust-probe-over-alleg">these stocks could be in for more losses on Friday.</a>
Economic Evidence Not-so Positive: The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) traded down about 3% in premarket trading, adding to the 7%+ drop seen on Thursday. The sell-off seen on Thursday came on the back of some sore data points, including weak manufacturing activity data and a spike in jobless claims. These data points added weight to the view that the economy is slowing down and could potentially face the risk of a hard landing.
The Federal Reserve Chairman Jerome Powell and his team have hinted at beginning rate cuts as early as the September meeting. Rate cuts could bring the spotlight to the SMID-cap stocks, which have underperformed the broader market in the bull run seen since 2023, accelerating the rotation out of mega-cap techs. 
Incidentally, small-caps also retreated on Thursday, suffering more losses relative to the tech stocks.
See Also: <a href="https://www.benzinga.com/money/best-semiconductor-stocks">Best Semiconductor Stocks</a>
Sector-Specific Risks: Semiconductor stocks are facing some sector-specific risks such as the U.S.-China standoff, which will remove from the equation a key market for these companies. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) are already facing the music as they scramble to offset the impact by rolling out chips that can help them sidestep the China chip ban imposed by the U.S.
Regulatory overhang is an added impediment for these companies. Nvidia for one is stymied by the possibility of the U.S. Department of Justice initiating a probe over the Jensen Huang-led company monopolizing the market for AI accelerators. 
Also weighing down on sentiment is <a href="https://www.benzinga.com/news/earnings/24/08/40115276/intel-stock-falls-after-weak-q2-results-new-cost-reduction-plan-15-headcount-reduction">a disappointing earnings report for Intel Corp. </a>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and the company also announced workforce reduction and suspension of dividends in the wake of the predicament.
The ultimate fate of chip stocks in Friday&#8217;s session will hinge on how the July non-farm payrolls report pans out. A modest slowdown in job growth and contained average hourly earnings could prompt traders to buy back beaten-down stocks. On the contrary, very weak job growth and/or a rise in the average hourly earnings &#8211; a proxy for inflation, could steepen the sell-off. The Stock Moves: Intel is leading the sell-off with a 21.79% plunge to $22.72, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>Among the other major decliners in the premarket are:
<ul>
<li>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) fell 6.52% to $826.13.</li>
<li>Arm Holdings plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NYSE">ARM</a>) was down about 5.37% to $114.38.</li>
<li>AMD was down a more modest 0.70% to $131.61.</li>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) fell 2.30% to $140.64.</li>
<li>Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) slipped 3.46% to $96.</li>
</ul>
The SOXX has pulled back to a nearly 2-month low with its plunge on Thursday. The exchange-traded fund closed at its lowest level since May 9, settling down 7.21% to $218.42. In the premarket on Friday, it was down 2.94% at $211.99. Among the other sector-specific ETFs:
<ul>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) fell 3.68% to $222.50.</li>
<li>Direxion Daily Semiconductor Bull 3X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) plunged 7.91% to $32.23.</li>
<li>GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>), an ETF that tracks Nvidia&#8217;s performance, fell 7.48% to $47.60.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/07/40061267/asml-shares-surge-over-7-as-team-biden-plans-to-exempt-allies-from-new-rule-on-foreign-chip-equipmen">ASML Shares Surge Over 7% As Team Biden Plans To Exempt Allies From New Rule On Foreign Chip Equipment Export To China</a></li>
</ul>
Photo by Igor Omilaev on Unsplash

Movers

Chip Stocks Staring At Another Bloodbath As Intel Tumbles, Nvidia Dips 4%, ASML Crumbles Over 6%: What's Ailing The Sector Friday

In a recent development, chip ETFs have experienced a significant upswing as a result of President Biden&#8217;s decision to exempt some allies from the new rule governing chip exports to China.
This movement also comes on the heels of&nbsp;Advanced Micro Devices, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) <a href="https://www.benzinga.com/news/earnings/24/07/40060832/amd-skyrockets-over-9-lifting-along-with-ai-rival-nvidia-whats-going-on">posting its second-quarter</a> results which exceeded expectations and guided the current quarter's revenue above consensus. 
What Happened: According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, on Wednesday, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>), which has 100% exposure to AMD&#8217;s peer Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) saw an 11.78% increase, trading at $52.65, up from Tuesday&#8217;s close of $47.10. 
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) also experienced a significant boost, trading 10.71% higher at $41.23, compared to its previous close at $37.24.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/40038854/why-bitcoin-etf-gbtc-is-down-a-whopping-10-today?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Why Bitcoin ETF GBTC Is Down A Whopping 11% Today</a>
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) followed suit, with an 8.73% increase, trading at $110.98, a significant rise from Tuesday&#8217;s close at $102.07. The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) saw a 4.20% increase, trading at $239.10, up from $229.47. Lastly, the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose by 3.69%, trading at $228.73, up from $220.58 on Tuesday.
Why It Matters: The Biden administration announced <a href="https://www.benzinga.com/24/07/40061267/asml-shares-surge-over-7-as-team-biden-plans-to-exempt-allies-from-new-rule-on-foreign-chip-equipmen">the new rule </a>on foreign chip equipment exports to China which will enhance U.S. authority to halt exports of semiconductor manufacturing equipment from certain foreign countries to Chinese chipmakers. However, shipments from key allies such as Japan, the Netherlands, and South Korea will be exempted, thereby limiting the rule's impact.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/07/40029681/trump-accuses-opec-of-manipulating-oil-prices-to-favor-kamala-harris-warns-she-will-be-a-disaste?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Accuses OPEC Of Manipulating Oil Prices To Favor Kamala Harris, Warns &#8216;She Will Be A Disaster For The USA!&#8217;</a></li>
</ul>
Picture by blickpixel on Pixabay and Karolina Grabowska on Pexels and Osman Bugra Nuvasil on Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

NVDL, SOXL, And Other Chip-Stock Tracking ETFs Are Trading Higher In Premarket Today: Here's Why

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has been a standout performer among semiconductor companies and <a href="https://www.benzinga.com/topic/magnificent-seven">the Magnificent Seven stocks</a>. 
However, can it maintain its leadership position through the second <a href="https://www.benzinga.com/quote/NVDA/news">half of 2024</a>?
Ed Egilinsky, Managing Director at Direxion, shares his insights, shedding light on the key drivers and potential headwinds for this tech titan.
<h2 class="wp-block-heading">Nvidia&#8217;s Sky-High Valuations Give Investors A Pause</h2>
&#8220;Nvidia has been a stalwart in the tech space over the last few years,&#8221; Egilinsky acknowledges. &#8220;However, its current valuation might make some investors pause. There is no denying Nvidia is a leader in the chip space and more specifically regarding AI-related chips. They should be a notable player in the space for years to come.&#8221;
But even champions need a breather. Post-stock split, Nvidia has underperformed both:
<ul>
<li>The broader semiconductor index, as tracked by the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), and</li>
<li>the Nasdaq 100 index, as tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</li>
</ul>
Hence, Egilinsky believes the sky-high valuation might face reevaluation if competition intensifies or demand slows down.
Read Also: <a href="https://www.benzinga.com/government/24/07/39646273/is-nvidia-defying-us-export-controls-whats-going-on">Nvidia Could Generate $12B In China With New AI Chips That Comply With US Restrictions: Report</a>
<h2 class="wp-block-heading">Opportunities For Nvidia Bulls and Bears Alike</h2>
While Nvidia&#8217;s stock has trended mostly higher year-to-date, Egilinsky sees room for both bulls and bears. &#8220;For those active traders seeking to trade short-term price movements with Nvidia stock regardless of direction, Direxion offers tools to capitalize on these opportunities,&#8221; he notes.
Despite Nvidia's impressive performance, the stock market landscape remains dynamic. &#8220;Our leveraged ETFs are designed for active/short-term trading and should be monitored daily,&#8221; Egilinsky advises.
For traders looking at the bigger picture, the broader semiconductor space offers its own set of opportunities. 
Egilinsky highlights that Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) ETFs cater to those wanting to take a stance on the entire sector. 
&#8220;Our largest ETF currently is the SOXL ETF with more than $10 billion in assets. However, with the rally in semiconductors year-to-date, we have seen net inflows into 3X Bear semiconductor (SOXS) and outflows into our 3X Bull (SOXL),&#8221; said Egilinsky.
<h2 class="wp-block-heading">What's Next For Nvidia?</h2>
As Nvidia navigates H2 2024, the balance between its rich valuation and potential competition will be crucial. &#8220;There might be increasing competition and/or a demand slowdown leading to Nvidia's current rich valuation being reevaluated,&#8221; Egilinsky predicts.
For now, Nvidia remains a key player in the tech sector, but active traders will need to stay vigilant.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/07/39709928/nvidia-absent-at-chinas-ai-show-chinese-gpu-makers-step-up-report">Nvidia Absent At China&#8217;s AI Show, Chinese GPU Makers Step Up: Report</a></li>
</ul>

EXCLUSIVE: Nvidia's Sky-High Valuation 'Gives Some Investors Pause,' Expert Warns Of Reevaluation

On Thursday, Taiwanese contract chipmaker&nbsp;Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) projected a 10% annual revenue growth in the global semiconductor industry, excluding memory chips.
"This is a new golden age of opportunity with artificial intelligence applications&nbsp;(AI),"&nbsp;Reuters quoted SVP Cliff Hou&nbsp;as saying&nbsp;at an event in Hsinchu.
In April, the key&nbsp;supplier of Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) slashed its outlook for the global semiconductor industry, excluding memory, to a growth rate of ~10% from a previous forecast of over 10%.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/23032720/newplot-19.png" alt="" class="wp-image-351755" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/23032720/newplot-19.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/23032720/newplot-19-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/05/38940907/asml-and-taiwan-semi-prep-for-potential-china-taiwan-conflict-with-remote-shutdown-feature" rel="noreferrer noopener">ASML and Taiwan Semi Prep for Potential China-Taiwan Conflict with Remote Shutdown Feature</a>
World Semiconductor Trade Statistics projected 13.1% growth for the global semiconductor market in 2024.
Thanks to the AI frenzy, TSMC expects second-quarter&nbsp;sales&nbsp;to grow by up to 30%.
Analysts noted that TSMC&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38969084/nvidia-chooses-taiwan-semiconductors-cowos-l-for-blackwell-in-major-capacity-boost-analyst" rel="noreferrer noopener">plans to triple</a>&nbsp;its 3 nm family capacity from 2023 to 2024, with Chip-on-wafer-on-substrate (CoWoS) capacity growing at a CAGR of 60%+ from 2022 to 2026.&nbsp;
CoWoS is&nbsp;an advanced packaging technology for high-performance computing (HPC) and artificial intelligence (AI) components. Also, Nvidia has chosen&nbsp;TSMC's&nbsp;CoWoS-L for Blackwell in a&nbsp;major&nbsp;capacity ramp-up.
TSMC reported<a target="_blank" href="https://www.benzinga.com/news/24/05/38842448/taiwan-semi-flags-high-costs-of-asmls-latest-chip-machines" rel="noreferrer noopener">&nbsp;first-quarter revenue&nbsp;growth</a>&nbsp;of&nbsp;16.5% to $18.87 billion, surpassing the analyst consensus of $18.40 billion. Advanced technologies formed 65% of&nbsp;TSMC's&nbsp;total revenue.&nbsp;
Reportedly, big techs led by&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) earmarked over $32 billion in AI infrastructure in the first quarter.
TSMC stock gained 73% in the last 12 months. Investors can gain exposure to the semiconductor sector via&nbsp;Direxion Daily Semiconductor Bull 3x Shares&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and&nbsp;Direxion Daily Semiconductor Bear 3x Shares&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>).
Price Action:&nbsp;TSM shares were trading higher by 2.54%&nbsp;at&nbsp;$160.11&nbsp;at&nbsp;the last check on Thursday.
Also Read: <a href="https://www.benzinga.com/government/24/05/38824316/taiwan-semi-set-to-build-11b-chip-plant-in-germany-aiming-for-2027-production-start" target="_blank" rel="noreferrer noopener">Taiwan Semi Set to Build $11B Chip Plant in Germany, Aiming for 2027 Production Start</a>
Photo by Jack Hong via Shutterstock

Guidance

What's Going On With Nvidia Supplier Taiwan Semi Stock On Thursday?

<a href="https://www.benzinga.com//node/38577767">Gaining control over the global supply of chips</a> is becoming a central priority for Western governments trying to compete with China in the race to dominate the industry.
Pandemic-related disruptions showed how a lack of semiconductors <a href="https://www.benzinga.com/news/21/09/23093194/semiconductor-shortage-hits-supply-chain-for-medtech-industry">can negatively impact a vast number of industries</a>. Now more than ever, securing a steady flow of chips is being placed atop geopolitical strategies worldwide.
This is part of the reasoning behind a long list of sizable investments that governments are pouring on their domestic building capabilities. Subsidies are expected to reach hundreds of billions of dollars in the coming decade.
Biden Pushes Hard: In the U.S., incentives for the semiconductor industry already amount to $32.8 billion as part of President Joe Biden's <a href="https://www.benzinga.com/topic/chips-act">far-reaching CHIPS Act</a> in an effort to boost jobs, gain independence from Asian production and improve the administration's image ahead of the <a href="https://www.benzinga.com/topic/2024-election">presidential election</a>.
On Monday, Treasury Secretary Janet Yellen said it's "<a href="https://www.benzinga.com/markets/asia/24/05/38795043/yellen-calls-for-fair-trade-with-china-urges-other-central-banks-to-limit-currency-interventions">critically important for the United States to have a role in strategic industries</a>," including semiconductors.
Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) are among U.S. companies poised <a href="https://www.benzinga.com/government/24/05/38650086/intel-micron-among-winners-in-bidens-280b-chips-act-for-semiconductor-advancement">to benefit from measures coming from the CHIPS Act</a>.
Another $39 billion in subsidies have been promised by the government, along with $75 billion in loans and tax breaks for companies in the sector, <a href="https://www.bloomberg.com/news/features/2024-05-12/chip-technology-spending-gets-81-billion-boost-in-china-rivalry?srnd=homepage-americas&amp;sref=TBDibEcD">according</a> to Bloomberg.
The administration's strategy to bolster the chips industry <a href="https://www.benzinga.com//node/38682654">also includes several export restrictions on China</a>, along with international lobbying efforts with European partners aimed at limiting China's access to key technology needed to develop the most advanced semiconductors.
Earlier this year, ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>), a Dutch company producing machines that are vital in the development of advanced semiconductors, <a href="https://www.benzinga.com/government/24/01/36591828/chipmaking-giant-asml-at-the-heart-of-u-s-china-tech-battle-export-bans-and-global-implications">raised concerns over its place at the center of a broader geopolitical conflict</a> between China and the U.S.
Export controls by the U.S. on China are affecting some of its largest players. Last week, China&#8217;s top chipmaker Semiconductor Manufacturing International Corp <a href="https://www.benzinga.com/markets/asia/24/05/38751498/chinas-top-chipmaker-smic-sees-profit-margin-plummet-to-15-year-low-amid-us-export-controls">reported its worst margin since the 2008 financial crisis</a>.
The U.S. government has <a href="https://www.benzinga.com//node/38682654">recently revoked export licenses that previously allowed </a>Intel and Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), to supply essential chips to Shenzhen-based Huawei.
Read also: <a href="https://www.benzinga.com/government/24/04/38249052/samsung-secures-6-4b-from-us-for-texas-chip-factory-after-nvidia-supplier-tsmcs-breakthrough">Samsung Secures $6.4B from US for Texas Chip Factory After Nvidia Supplier TSMC&#8217;s Breakthrough</a>
China's $142B Response: For its part, China is also funneling billions into reaching semiconductor sovereignty. The exact figure is unclear since the Chinese government doesn't make those numbers public, yet an estimate from the Semiconductor Industry Association puts the figure at $142 billion between executed and planned financing.
According to Bloomberg, China now has more semiconductor fabs under construction than any other country. The country's massive efforts are born out of a need to compensate for restricted access to U.S. and European-made equipment, without which manufacturing the most complex semiconductors still remains impossible.
In her Monday interview, Yellen also warned against possible overflows in specific industries after "enormous subsidies in critical areas of advanced manufacturing has resulted in overcapacity," in China.
That's the main concern behind the recent wave of stimulus spreading across the Northern Hemisphere.
India, Japan and Europe Also Want In: In Europe, several plans have been unveiled to pour billions into the industry, including a wide-ranging initiative from the European Union as well as specific state-backed programs.
The European Chips Act will "mobilize more than €43 billion ($46 billion) of public and private investments and set measures to prepare, anticipate and swiftly respond to any future supply chain disruptions, together with Member States and international partners," according to an official press release.
Germany, France and The Netherlands have already spent a collective $24 billion in subsidies while several more billions have been proposed in Spain, Italy and the UK.
Over in Asia, the biggest state-backed investments so far come from Japan, where $16 billion of a total planned of $64 billion have been allocated, and India where $7 billion have been allocated from a $10 billion government fund.
The largest U.S.-listed ETFs following the semiconductor industry by total assets are VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>)
Now read: <a href="https://www.benzinga.com//node/38764729">SoftBank&#8217;s Billion-Dollar Bet: Switching From Startups To Semiconductors, AI</a>
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China's Semiconductor Spending Tops US With $142B Commitment: Global Chip Race Heats Up

Semiconductor stocks were up on Thursday after largely having slipped this last month. Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was up over 2.0% at the time of writing. Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) was up over 0.5%. Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) was up 0.2%. The lone drop came from Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), which shed 0.15%.
<h2 class="wp-block-heading">Fed Decision</h2>
The moves came in large part due to relief at the news that the Federal Open Market Committee (FOMC) did not intend to raise rates and is still open to lowering them before the year is out. This was mostly expected, but some feared that disappointing inflation numbers would lead the FOMC to raise rates or indicate there was little hope of any reduction in the near future.
The semiconductor industry, a high-growth sector, responded well to the news. Typically, investors are scared away from high-growth equities in high-interest rate environments.
The Fed reiterated that its target for considering reducing interest rates would be 2% inflation. All eyes will be on numbers coming May 15.
<h2 class="wp-block-heading">Solid Earnings</h2>
In addition to the FOMC decision, Qualcomm (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) reported earnings on Wednesday. The company largely beat Wall Street's expectations; it reported EPS of $2.44 vs the expected $2.32 and revenue of $9.39 billion vs the expected $9.34 billion. The strong numbers gave the company's stock a nearly 10% bump today and indicated a strong market for the entire sector, leading to bleed over in other semiconductor stocks.
<h2 class="wp-block-heading">Investing In The Space</h2>
Investors looking to get into the space can do their due diligence and pick individual equities. However, many investors would do well to consider a semiconductor-focused ETF instead like the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>). The fund invests in a diversified set of companies involved in the space, such as NVIDIA and AMD.
And for investors who want to take their view even further, <a href="https://www.direxion.com/">Direxion</a> offers the <a href="https://www.direxion.com/product/daily-semiconductor-bull-bear-3x-etfs">Direxion Daily Semiconductor Bull 3X Shares</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) which seeks daily investment results, before fees and expenses, of 300% of the performance of the NYSE Semiconductor Index.
For the bears, who think Semis are overvalued and a correction is imminent, Direxion also offers the <a href="https://www.direxion.com/product/daily-semiconductor-bull-bear-3x-etfs">Direxion Daily Semiconductor Bear 3X Shares</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) which seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the NYSE Semiconductor Index.
Featured photo by<a href="https://unsplash.com/@eiskonen?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash"> Hans Eiskonen</a> on<a href="https://unsplash.com/photos/bull-grayscale-photo-wn57cSQ7VzI?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash"> Unsplash</a>

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Longer Calendar Leveraged 2.0x SOX (Semiconductor) ETFs

ACVF

AMAT

AMBA

AOSL

CEVA

CRDO

DEMZ

FSLR

FTXL

KLAC

KRUZ

MAGA

MRVL

NANC

PDFS

POET

SDOW

SKYT

SMHX

SOXM

SOXW

SPXU

SQQQ

TQQQ

UDOW

UPRO

YALL

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Leveraging Trades On Semiconductors With SOXL And SOXS

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