The Direxion Daily Semiconductors Bull 3x Shares (SOXL) plummeted 8.39% in intraday trading on Friday, underperforming the broader semiconductor sector. The decline came as semiconductor stocks faced selling pressure due to concerns over potential stricter export controls by the U.S. government.
Semiconductor giants like AMD, Nvidia, Broadcom, and TSMC witnessed significant declines, with AMD falling 6%, Nvidia dropping 4%, Broadcom shedding 2.4%, and TSMC declining 1.3%. The sell-off followed reports that the Biden administration is expected to unveil tighter curbs on semiconductor technology exports.
Nvidia, a leading artificial intelligence chip maker, expressed concerns about the proposed regulations, stating that the "extreme 'country cap' policy will affect mainstream computers in countries around the world, do nothing to promote national security, but rather push the world to alternative technologies." The company urged the Biden administration not to pre-empt the incoming Trump administration with this policy, which it believes will play into the hands of U.S. adversaries.
