The Great AI Handoff: Hedge Funds Dump AI At Record Pace As Retail Pours Record $7 Billion Into 3x Semis ETF

Semiconductor stocks fell as China's CXMT announced progress in DRAM technology. Micron (MU) dropped 3.9%, SOXL lost 8.2%. CXMT's 4F² architecture could challenge incumbents. TrendForce data shows CXMT's market share rose to 9.5%. Investors worry about pricing power erosion. Key semiconductor indices and stocks declined.

Direxion Daily Semiconductor Bull 3X Shares (SOXL) fell 5.3% in pre-market trading to $155.60 due to sector-wide profit-taking in chip stocks, amplified by its 3x leverage. Key holdings like Intel, AMD, and Micron also declined. Bearish options data and broader market weakness contributed to the drop. SOXL's 52-week range is $28.12 to $302.00, highlighting its volatility.

South Korean retail investors sold $1.1B in semiconductor 3x leveraged ETFs, notably SOXL, and shifted to ultra-short Treasuries and dividend ETFs like SCHD and JEPQ. Concerns over rising interest rates and AI investment slowdown drove the shift. SOXS saw $138.83M in net buying, while individual semiconductor stocks like SK Hynix and Nvidia also faced net selling.

Novartis reported relapse data for its multiple sclerosis drug remibrutinib that fell short of expectations. The company's shares have seen a 5-day change of 128.00 CHF, a 1st Jan change of -0.68%, and a year-to-date increase of 16.79%.

Ionis reported that Roche's Phase 3 study of sefaxersen showed a 43.1% reduction in proteinuria versus placebo in adults with IgA nephropathy, a statistically significant result. The drug was well tolerated, and Ionis may receive regulatory and sales milestones, as well as royalties, under its agreement with Roche.

Vertex Pharmaceuticals reported positive interim results from its Phase 3 RAINIER trial, showing that povetacicept reduced proteinuria by 49.8% compared to placebo. The FDA is reviewing the drug for accelerated approval with a PDUFA date of November 30, 2026.