SoftBank, ARM Deal Helps Semiconductor ETF Push Higher

A semiconductor sector exchange traded fund was leading markets higher Monday after Japanese technology company SoftBank Group Corp. announced a deal to acquire Britain’s ARM Holdings (NasdaqGS: ARMH) for $32 billion.

SoftBank is seeking to expand into the so-called Internet of Things, or home devices from smart-thermostats to security cameras and domestic appliances that connect online, the Associated Press reports.

“ARM will be an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the ‘Internet of Things,'” Masayoshi Son, Chairman and CEO of SoftBank, said.

ARMH shares surged 41.3% Monday on the deal.

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Meanwhile, the VanEck Vectors Semiconductor ETF (NYSEArca: SMH), which includes a 4.8% tilt toward ARMH, gained 2.8% on Monday.

Additionally, the Direxion Daily Semiconductors Bull 3x Shares (NYSEArca: SOXL), which takes the leveraged 300% daily exposure of the PHLX Semiconductor Sector Index, surged 4.4%.