Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 5% during Wednesday's intraday trading, reflecting bullish sentiment in the semiconductor sector. The leveraged ETF, which tracks semiconductor stocks, benefited from positive developments in the industry.

The rally was fueled by two key factors: China's rapid advancements in silicon carbide (SiC) semiconductor technology and progress in stabilizing the global semiconductor supply chain. Chinese firms have achieved mass production of 8-inch SiC substrates, with companies like SICC and TankeBlue expanding capacity and reducing defect densities. Meanwhile, China and the EU discussed collaborative measures to address supply chain disruptions, easing investor concerns.

These developments signal growth and reduced uncertainty for the semiconductor sector, driving demand for SOXL as a leveraged play on the industry.