Core Insights - The demand for leveraged ETFs, particularly SOXL's 3x daily exposure to semiconductors, necessitates a distinct monitoring framework compared to traditional buy-and-hold funds [2] - SOXL has $13.6 billion in assets and a high portfolio turnover rate due to daily rebalancing, which combines sector momentum with structural decay [2] Semiconductor Performance Drivers - Memory pricing power is crucial for semiconductor performance, with Micron showing a 257% year-over-year earnings growth as the memory downturn reversed, dependent on sustained AI infrastructure spending and data center buildouts [3][6] - AI chip capital expenditure cycles influence equipment makers, which make up about 10% of SOXL's holdings, with companies like Lam Research and Applied Materials indicating whether hyperscalers are expanding or pausing fab capacity [4] Rebalancing Costs and Risks - SOXL's structure includes approximately 30% in cash and treasury instruments, which creates a cash drag that reduces upside capture during market rallies [5][6] - The fund's top-ten holdings account for 40% of equity exposure, with Broadcom representing 6.1% and trading at a forward P/E ratio of 38x, indicating significant concentration risk [7]