True
US semiconductor shares fell sharply in a single-session rout, with the sector down 7.2% and the leveraged exchange-traded fund SOXL — which tracks semiconductor stocks with 3x leverage — collapsing 25%.
The 7.2% decline hit US semiconductor stocks broadly, underscoring the volatility in a sector that has been a centerpiece of the global AI investment boom. Because SOXL applies three-times daily leverage to the semiconductor index, the sector's fall was amplified into a roughly 25% loss for the fund, illustrating the outsized risk carried by leveraged instruments during sharp market swings.
The scale of SOXL's drop highlights how leveraged ETFs magnify not only gains but also losses, particularly in high-momentum sectors such as semiconductors, where Korean players including Samsung Electronics and SK hynix are deeply tied to global demand.
The claim that US semiconductor stocks sank 7.2% while SOXL plunged 25% is True.
Verdict: True