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SOXL sees signs of renewed AI infrastructure momentum after July slump
The Direxion Daily Semiconductor Bull 3x Shares targets 300% of the NYSE Semiconductor Index’s daily move, and Morgan Stanley says AI compute demand should outpace supply for years.
AI infrastructure stocks struggled in July, but ETF Trends argues the trade is starting to show signs of life again, with semiconductor names leading the resurgence.
The article points to the Direxion Daily Semiconductor Bull 3x Shares, SOXL, a leveraged ETF that seeks to deliver 300% of the daily returns of the NYSE Semiconductor Index, and it frames the fund as suited for short term, risk aware trading rather than long term holding.
ETF Trends cites Morgan Stanley’s view that the recent decline reflected short term positioning rather than weaker fundamentals, adding that the bank expects demand for AI compute to outpace supply for years.
It also highlights projected hyperscaler spending on AI infrastructure of an estimated $800 billion this year, with that figure expected to rise to $1.2 trillion in 2027 and $1.4 trillion in 2028, supported by continuing aggressive investment by large technology companies.