Bearish On The Semiconductor Sector Following AMD Earnings Reaction? This Fund Offers 3X Leverage
Portfolio Pulse from Melanie Schaffer
The Direxion Daily Semiconductor Bear 3X Shares (SOXS) surged almost 13% following a bearish reaction to Advanced Micro Devices' (AMD) quarterly earnings. The semiconductor sector had been experiencing a bull cycle, with NVIDIA Corporation (NVDA) flying high amid reports the company will become an anchor investor in Softbank Group Corp-backed British chip designer Arm IPO. SOXS is a triple-leveraged fund that tracks a variety of stocks in the semiconductor sector, with AMD making up 7.23% of the fund, and Nvidia weighted at 8.4%.
August 04, 2023 | 12:01 pm
News sentiment analysis
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NEGATIVE IMPACT
AMD's bearish quarterly earnings print led to a surge in SOXS, which tracks AMD among other semiconductor stocks.
AMD's disappointing earnings have led to a bearish market reaction, negatively impacting its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
SOXL is another fund that tracks the semiconductor sector and could be impacted by the same factors as SOXS.
SOXL, like SOXS, tracks the semiconductor sector and could be impacted by the same factors, including AMD's earnings and NVDA's potential investment in Arm IPO.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
NVDA's potential investment in Arm IPO has been a positive factor for the semiconductor sector.
NVDA's potential investment in Arm IPO is seen as a positive development for the company and the semiconductor sector, likely to boost its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
SOXS surged following AMD's bearish earnings and NVDA's potential investment news.
SOXS, which tracks a variety of stocks in the semiconductor sector including AMD and NVDA, surged following the bearish reaction to AMD's earnings and the news of NVDA's potential investment in Arm IPO.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100