$SOXL Behind SOXL’s sharp V-shaped rebound: it’s not that faith suddenly returned—it’s a backlash from leveraged investors who’d been scared off by the sell-off.

SOXL staged a sharp V-shaped rebound overnight. The key driver wasn’t an overnight revival of the AI narrative, but a leveraged short squeeze after an extreme oversold stretch.

It had just been hammered 33% last week. Then, as the Philadelphia Semiconductor Index ended its eight-day losing streak, bargain hunters rushed in. JPMorgan data show that SOXL attracted $7.2 billion in a single week, setting a record for inflows. Retail investors are still willing to use leverage to bet on AI semiconductors—the faith is still there, but leverage can magnify the pain, too.

The plan is unchanged: consider going long around 103, with a target near 110.

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