Shares of Dow component Intel (NasdaqGM: INTC), the world’s largest semiconductor maker are higher by 1.1% in midday trading Wednesday after the company reported third-quarter EPS of 58 cents on revenue of $13.5 billion. Analysts expected earnings of 53 cents a share on revenue of $13.47 billion.
Intel’s news has been enough to lift the iShares PHLX Semiconductor ETF(NasdaqGS: SOXX) 1% to within pennies of its 52-week high. The $235.7 million ETF allocates almost 8% of its weight to Intel. The Market Vectors Semiconductors ETF (NYSEArca: SMH), which has an almost 19% weight to Intel, is also up nearly 1%.
However, risk-tolerant investors may want to have a look at the Direxion Daily Semiconductor Bull 3X Shares (NYSEArca: SOXL). SOXL attempts to deliver three times the daily performance of the PHLX Semiconductor Sector Index, the underlying index for SOXX.
More upside could be on the way for SOXL, which has more than doubled year-to-date, as the leveraged ETF is now flirting with key technical levels.
“In terms of the trend, the moving averages in SOXL point to a strong uptrend, with the 20-day exponential moving average now above the 50-day moving average, and the 50-day moving average above the 200-day moving average. All three averages are also trending higher (this moving average analysis can be done on SMH with the same result), further confirming an uptrend is in place,” said Deron Wagner of Morpheus Trading Group.
SOXX’s index recently underwent some changes that are notable for investors in that ETF as well as SOXL.