Bearish outlook on SOXL amid chip stock volatility and regulatory risks

The author remains bearish on the leveraged semiconductor ETF SOXL, citing inherent risks of 3x leveraged funds and current market challenges. Despite a recent rebound in chip stocks, semiconductor shares face headwinds from uncertain AI funding, regulatory pressures, and high valuations. The author maintains short positions on SOXL and SOXS, expecting continued volatility and erosion in these ETFs. This cautious stance reflects concerns about the sustainability of gains in the semiconductor sector amid ongoing market uncertainty.

The leveraged semiconductor ETF SOXL has a market cap of $20.04 billion and traded with a volume of 65,009,024 shares as of Sep 24, 2026 14:11 WIB. On Pluang, SOXL's price was down 3.28% that day, while its inverse counterpart SOXS saw a 3.36% gain with a market cap of $1.70 billion and volume of 83,766,464 shares. These figures highlight active trading and volatility in leveraged semiconductor funds amid ongoing market uncertainty.