Home / Business and Economy / Redditor Turns $1M into $7.5M Despite 80% Drawdown
Redditor Turns $1M into $7.5M Despite 80% Drawdown
15 Jun
Summary
- A $1 million investment in SOXL grew to $7.5 million.
- The investment endured an 80% drawdown during a 2025 selloff.
- Leveraged semiconductor ETF's recovery driven by AI chip demand.
A remarkable investment story emerged on Reddit, detailing a $1 million stake in Direxion Daily Semiconductor Bull 3X Shares (SOXL) that ballooned to $7.5 million. This extraordinary return was achieved despite enduring a severe 80% drawdown during the tariff-related semiconductor selloff in 2025. The investor's resilience paid off as the position recovered spectacularly with the resurgence of AI chip demand in the spring of 2026.
SOXL, a 3x leveraged bet on semiconductor stocks like NVIDIA and Broadcom, saw its value collapse during the 2025 downturn. However, sustained AI infrastructure spending and hyperscaler capital expenditure commitments in early 2026 propelled the sector, and consequently SOXL, to significant gains. This dramatic turnaround underscores the high-risk, high-reward nature of leveraged ETFs, where substantial losses can be followed by massive recoveries.
