The Direxion Daily Semiconductor Bull 3X ETF (SOXL) rebounded 13.7% on June 8, 2026, as semiconductor stocks staged a broad recovery from their worst week in months following Broadcom’s disappointing earnings guidance.
SOXL plunged 30.51% on June 5, 2026, when Broadcom reported third-quarter AI chip revenue guidance of $16 billion, roughly 7% below analyst expectations of $17.2 billion. The guidance miss triggered a sector-wide selloff that rippled through all semiconductor stocks, with Broadcom itself falling 12.6% after the announcement.
The steep decline in SOXL reflected the fund’s 3X leverage structure, designed to amplify daily returns of the underlying semiconductor index. When the broader chip sector fell approximately 10%, the leveraged ETF magnified that loss to roughly 30%, making it one of the worst-performing equity instruments during the selloff.
The rebound on June 8 marked a shift in market sentiment, as investors reassessed valuations following the initial shock. Semiconductor stocks led the broader market recovery, with the sector finding support from growing recognition that long-term AI demand remained intact despite near-term guidance concerns.
Broadcom’s revenue guidance fell $1.2 billion short of expectations, according to reports, and the company notably did not raise its 2026 AI revenue outlook. This caution stood in stark contrast to the broader semiconductor sector’s momentum earlier in 2026, when AI-driven demand had powered strong gains across chip stocks. The selloff on June 5 wiped out approximately $1.3 trillion in market value across the semiconductor sector, according to market analysis.
The recovery underscores the volatility inherent in leveraged ETFs, which reset daily and are designed for short-term trading rather than long-term holding. SOXL’s structure means that even when the underlying semiconductor index recovers, the daily reset mechanism can lead to long-term underperformance in sideways or choppy markets—a dynamic that has historically eroded returns for buy-and-hold investors.
Sources
- ECIKS.org — reported SOXL’s 13.7% rebound on June 8, 2026, and 30.51% plunge on June 5 from $262.70 to $182.54
- Investing.com — confirmed Broadcom’s Q3 AI chip revenue guidance of $16 billion versus consensus near $17.2 billion
- Direxion — confirmed SOXL seeks 300% daily return of the ICE Semiconductor Index
- 24/7 Wall St. — reported Broadcom’s guidance miss and semiconductor sector selloff details
- Reuters — reported Broadcom’s guidance miss and sector impact
