Direxion Daily Semiconductors Bull 3x Shares (SOXL) is experiencing a significant surge, soaring 7.97% in intraday trading on Thursday. This impressive gain builds upon the strong momentum seen in the previous session, where SOXL had already climbed 12% to close at $10.29.

The remarkable rally in SOXL, a leveraged ETF that aims to deliver three times the daily performance of the semiconductor sector, can be attributed to several factors driving optimism in the chip industry. President Donald Trump's recent statement that tariffs on China "will come down substantially" has eased concerns about the U.S.-China trade dispute, which has been weighing heavily on semiconductor stocks. This positive development has injected new confidence into the sector, benefiting SOXL and other chip-related investments.

Adding fuel to the bullish sentiment, renowned investor Cathie Wood's Ark Investment Management made substantial purchases in various chipmakers, including a notable $1.1 million share acquisition of Nvidia (NVDA). This vote of confidence from a high-profile investor has further bolstered the positive outlook for the semiconductor industry. The bullish momentum is also reflected in the options market, where SOXL saw exceptionally high trading activity. On Wednesday, a total of 495,518 SOXL option contracts were traded, with call options accounting for a substantial 70% of the overall trades, indicating strong bullish expectations among traders.