SOXS: Losses Will Only Deepen From Here -- Bad Time To Bet Against Semis

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Jun. 12, 2025 4:44 PM ETDirexion Daily Semiconductor Bear 3X Shares ETF (SOXS)NVDA, AMD, ON, AVGO, SOXL, AMD:CA, AVGO:CA, NVDA:CA, SOXSTech Stock ProsInvesting Group Leader(8min)SummaryWe don't usually cover ETFs, but we wanted to provide investors with a warning on SOXS, or in other words, a warning not to bet against the semis now.Semiconductor stocks have rebounded from April lows with the AI growth story back on track and a trade war truce, making SOXS unattractive even after its 58% YTD dip.Volatility decay places SOXS at an even higher risk profile as it erodes gains in leveraged ETFs like SOXS, especially without a sustained negative catalyst for semiconductors.The risk-reward now favors SOXS's counterpart, SOXL, as the semiconductor sector building up momentum heading into 2H25.Looking for a portfolio of ideas like this one? Members of Tech Contrarians get exclusive access to our subscriber-only portfolios. Learn More »Kolbz/iStock via Getty ImagesWe don’t usually cover ETFs here, but there is one that we have to warn investors about: Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA:SOXS). This is an inverse triple-leverage ETF of the daily performanceDon’t just invest—dominate with Tech Contrarians' realized return on closed positions of 65.8% since inception. You’ll get exclusive insights into high-focus stocks, curated watchlists, one-on-one portfolio consultations, and everything from live portfolio tracking to earnings updates on 50+ companies. Subscribe today for 20% off.And remember, be the first to know, not the last to react.This article was written byTech Stock Pros10.55K FollowersTech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.They run Tech Contrarians, an investing group providing institutional-level company research to individual investors. Utilizing a live portfolio with quarterly updates, bi-weekly newsletters, and answering questions daily via chat, Tech Stock Pros aims to demystify investing in the technology sector. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You